Latvian Competition Council (KP) invites food producers to not be afraid and report retailers’ unfair conditions, said KP Chairman Juris Gaiķis in an interview to TV3 programme 900 seconds on Thursday, the 11th of January.
He said the Prohibition of Unfair Trading Practices Law has a “black area” that lists what is prohibited, there is also a “grey area”, which provides for a mutual agreement, which does have to be mutual.
According to Gaiķis, KP can request to look at contracts, but the institution is unable to learn the nuances behind those contracts.
KP needs help to find nuances that manifest in the form of violations or abuse of suppliers. This is why KP invites suppliers to report cases containing violations.
“We invite people to overcome this fear factor and turn to us, so we can fight back together. What is written on paper is correct and we can see that, but what we don’t see is how things are actually implemented or circumvented. We need information,” said Gaiķis.
He also said that KP see relatively large risks with contracts within private brand goods group, since the purchase prices in the private goods group are much lower than the purchase prices of the manufacturer’s branded product of the same producer.
Gaiķis explained that in this case KP sees risks in situations when private brand product production contract is terminated, because the company may not be able to survive once the contract is terminated.
Also read: Latvian Competition Council fines Latvian Motor Insurers’ Bureau for distorting competition
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