Farmers, growers, and fishermen (suppliers) regularly suffer from unfair trading practices by large buyers. In addition, they are insufficiently aware of their rights under the Unfair Trade Practices in the Agricultural and Food Supply Chain Act (OHP Agriculture Act). This act strengthens the bargaining power of farmers, growers, and fishermen against larger market players by prohibiting unfair trading practices. This is according to a survey by the Authority Consumer & Market (ACM) on knowledge about the OHP Agriculture Act. The ACM is the regulator of this law and is keen to receive more reports.
Suppliers say they are often paid late by their buyers. However, they say they are even more troubled by unilateral modification of contracts by the buyer. These are two examples of unfair business practices. Suppliers are more willing to file a complaint with the ACM about unilaterally changing contracts.
Suppliers often do not report possible violations to ACM
The survey shows that many possible violations are not yet reported to the ACM. Several reasons play a role in this.
Many suppliers first want to try to solve the problem themselves with the customer. An additional factor is that suppliers fear that reporting to the ACM could damage their relationship with the customer. The frequency and extent of the violation also plays a role in the decision to report or not. If something is a one-off or has few (financial) consequences, suppliers do not expect to be bothered that much and choose not to report to the ACM.
In addition, unfamiliarity with the OHP Agriculture Act and with the ACM plays a role. Some 75% of the suppliers surveyed are not yet familiar with the OHP Agriculture Act. Suppliers also often do not know that they can report abuses to the ACM.
Awareness of the Agricultural OHP Act must improve
It is important that suppliers are well aware of their rights under the OHP Agriculture Act and their options if this law is violated by a customer. The ACM is therefore continuing to educate suppliers about this law and the ACM's supervision. Presentations and talks are planned at various organizations.
Following the first complaints, the ACM currently has several ongoing investigations. The ACM hopes to publish the results of these infringement investigations soon.
Who can report?
Farmers, growers, and fishermen can report to the ACM. In addition, a producer organization (PO), trade association, or association of suppliers, for example, can also file a report with the ACM. This way, individual suppliers who are bothered by their buyers do not have to be disclosed immediately. Suppliers can also submit a note anonymously.
What does the ACM do with notifications?
When a supplier reports to the ACM, the customer is not immediately informed. The ACM first contacts and discusses the complaint with the supplier and possible steps it or the ACM can take. If an investigation follows, the ACM may, for example, ask questions of the customer. And if necessary, the ACM may require the buyer to modify their behavior or impose a fine on the buyer. In doing so, the ACM takes into account as much as possible the consequences for the relationship between supplier and customer.
Source: Autoriteit Consument & Markt