UOKiK initiated proceedings against the owner of the Kaufland chain

The Office of Competition and Consumer Protection (UOKiK) has initiated proceedings against Kaufland Polska Markety, UOKiK announced. The entrepreneur unfairly use the contractual advantage over suppliers of agri-food products. The allegations relate to establishing the terms of cooperation during its duration and the requirement of additional discounts, which are not specified in contracts.

The proceedings were initiated after conducting explanatory proceedings regarding the rebate policy of 19 retail chains. The collected material gave grounds for accusing the company of unfair use of contractual advantage.

"Establishing the terms of cooperation during its duration means that suppliers do not know how much they will earn for the execution of orders. The same is true in the case of an additional discount. Kaufland Polska Markety contractors are not sure when the network will request a reduction in their remuneration. Cooperation between entrepreneurs should be fair, which means that the terms of cooperation, including the terms of rebate, should be clearly defined and known to the parties before signing the contract,” said the President of UOKiK, Tomasz Chróstny, quoted in the UOKiK release.

There is a penalty of up to 3 percent of the entrepreneur's annual turnover for unfair use of contractual advantage, it was also indicated. Kaufland is an international chain of stores belonging to the Schwarz Gruppe, offering groceries and everyday products. Throughout Europe, Kaufland has over 1,300 stores and employs approximately 132,000 people. In Poland, the chain currently has 227 stores and employs approx. 16,000 employees.

Source: UOKiK and ISBnews