UTP Directive
Directive (EU) 2019/633 of the European Parliament and of the Council on unfair trading practices in business-to-business relationships in the agricultural and food supply chain (UTP Directive)
The UTP Directive was adopted in April 2019. The Directive must be transposed at national level at latest by 1 May 2021 and applied by 1 November 2021. In Finland, the Food Market Act will be amended to comply with the provisions laid down in the Directive.
The purpose of the directive is to limit unfair practices that may occur due to the imbalance in the negotiating power of food supply chain actors. In particular, its objective is to maintain the market’s stability, increase farmers' incomes and improve the competitiveness of agriculture. The directive sets out 10 strictly banned unfair trading practices (black-listed practices) and 6 practices that must be banned unless they are clearly and unambiguously agreed upon in the context of the conclusion of the supply contract (grey-listed practices). For more information on black-listed and grey-listed practices see the Directive.
Key objectives of the Directive
- To protect, in particular disadvantaged suppliers of agricultural and food products from prohibited practices by a stronger contracting party.
- To prohibit 10 black-listed and 6 grey-listed practices that are in opposition to good commercial practice.
- To promote cross-border cooperation between authorities with the assistance of the European Commission.
- To harmonise regulation at the minimum level set by the Directive. Member States have the possibility to adopt or maintain national rules that go beyond the unfair trading practices listed in the Directive.