Tricky customers and suppliers - what rights do I have as a farmer?
The Unfair Trading Practices (UTP) Regulations were brought in by the EU, which protects farmers against unfair trading practices in business-to-business relationships, writes solicitor Stephen Coppinger.
Dear Reader,
New legislation came in last year in respect of consumer rights which is the new Consumer Rights Act (CRA) 2022. The purpose of the act was to modernise consumer rights and expand and create new rights, including:
- New rights for digital content contracts;
- New rights for services contracts;
- A right to agree a price reduction on faulty products or services;
- A ‘black list’ of contract terms that are always unfair;
- A ban on certain aggressive commercial practices, including fake reviews;
- New enforcement powers for the Competition and Consumer Protection Commission (CCPC) to ensure your consumer rights are upheld;
- A 30-day right to cancel an order and receive a full refund if goods are faulty or not as described;
- If a business refuses or fails to provide a remedy for goods, services, digital content or digital services that don’t match the description of what was paid for, it is a potential breach of consumer protection legislation;
- Businesses must deliver your goods to you within 30 days of when you place your order. It’s also the business’s responsibility to make sure the goods are delivered to you safely and on time.
The Unfair Trading Practices (UTP) Regulations were brought in by the EU, which protects farmers against unfair trading practices in business-to-business relationships.
The law against unfair trading practices bans 10 activities:
- Paying later than 30 days for perishable agricultural and food products;
- Paying later than 60 days for other agricultural and food products;
- Short-notice cancellations of perishable agricultural and food products;
- Unilateral contract changes by the buyer;
- Payment not related to a specific transaction;
- Risk of loss and deterioration transferred to the supplier;
- Refusal of written confirmation of a supply agreement by the buyer, despite the request of the supplier;
- Misuse of trade secrets by the buyer;
- Commercial retaliation by the buyer;
- Transferring the costs of examining customer complaints to the supplier.
The law against unfair trading practices bans six other activities unless the parties agree clearly in an unambiguous manner beforehand:
- Buyer returning unsold products to the supplier without paying for those unsold products;
- Payment by the supplier for stocking, display and listing;
- Payment by the supplier for promotion;
- Payment by the supplier for marketing;
- Payment by the supplier for advertising;
- Payment by the supplier for staff of the buyer, fitting out premises.
Under the UTP Regulations, the Minister for Agriculture, Food and the Marine was designated as the relevant enforcement authority in the State and the minister has created a UTP Enforcement Authority (UTPEA) to carry out these functions.
The minister/UTPEA (acting through its authorised officers) currently has the power to:
- Conduct investigations, either on its own initiative or upon receipt of a complaint;
- Require buyers and suppliers to provide all necessary information;
- Carry out unannounced on-site investigations;
- Take decisions if an infringement is found and require the buyer to bring the prohibited trading practice to an end by issuing a compliance notice;
- Initiate court proceedings for the imposition of fines; and
- Publish decisions following the conclusion of the investigation.
Part 3 of the regulations sets out conditions under which suppliers may address complaints, and the supplier or the buyer must be established in the State.
On receipt of such a complaint, the minister/UTPEA must inform the complainant within a reasonable period of time regarding how it intends to proceed.
Email: info@walshandpartners.ie
- While every effort is taken to ensure the accuracy of the information contained in this article, Walsh & Partners does not accept responsibility for errors or omissions howsoever arising. Readers should seek legal advice in relation to their particular circumstances at the earliest opportunity.
