Once upon a time in the West?

At the end of February PricewaterhouseCoopers Kft. organised a roundtable discussion about the experiences regarding the first year of the law on the prohibition of unfair market conduct by retailers against suppliers. Péter Biczó, senior partner in PwC’s Retail and FMCG group welcomed participants. Dr Judit Firniksz, a lawyer from Réti, Antall and Madl Landwell moderated the event, who stated that the discussion’s goal was to clarify problematic issues in order to help the everyday work of suppliers and retailers alike. The expert informed participants about this year’s most important amendments to Act 95/2009 on the prohibition of unfair market conduct by distributors against suppliers (from now on abbreviated as Apumc.). For instance the rules for organising promotions changed: suppliers’ consent became necessary and the length, volume and level of price discount are also stipulated. Apumc. also stipulates that with a couple of exceptions it is forbidden to sell below delivery or cost price. The conditions for bonuses rewarding extra turnover and payment conditions are also important issues, especially the topics of payment deadlines and invoice handling. From the legislators’ side Dr Zsolt Feldman from the Ministry of Rural Development evaluated the first year of Apumc. The deputy junior minister emphasised that market conditions have not changed since the act entered into force. In his opinion the government’s goal was to establish order in the sometimes Wild West-like conditions and to create bigger transparency on the market. Apumc. partly achieved the objectives it set out and did not generate an increase in import as existing, stable supplier-relations remained solid. Attila Bereczki from the Central Agricultural Office (MgSzH) talked about the results of their control examinations; he told that retailers often set their IT systems to the 30-day payment deadline but still paid late because they forgot about weekends and holidays. Fixed bonus also caused problems as Apumc. only allows progressive bonuses. The 50 participants asked many questions from the expert, who told that last year the office imposed fines in the value of more than HUF 177 million for selling below purchase price. Mr Bereczki told that the netting of services recognised in the law is considered unfair conduct of the distributor and if such breach of law is verified, substantial fines will be imposed. Dr László Szűcs, another lawyer with Réti, Antall and Madl Landwell closed the event with introducing the basic concept of the bill that would limit Sunday shopping hours. According to the present regulation, employees are entitled to two rest days per week, one which must be Sunday – but the law allows for several exceptions. The new bill limits the number of these exceptions to three: work performed for an employer that is intended to operate on Sunday too, work performed without interruption and work performed seasonally. Mainly the following commercial service providers belong to the first category: bars and restaurants, commercial places of accommodation, flower shops, petrol stations and some retail units with a floor space below 280m². All other retail units would be allowed to be open on 12 Sundays per year. New Sunday shopping hours are expected to be introduced from the beginning of next year.