• Do French fries and potato chips manufacturers use their contractual advantage unfairly towards farmers - potato suppliers?
• President of UOKiK Tomasz Chróstny has instigated the preliminary investigation regarding practices pursued by major players on this market.

President of UOKiK Tomasz Chróstny has checked practices of six business entities in the preliminary investigation, namely: Farm Frites Poland, Frito Lay Poland, Iglotex, Intersnack Poland, McCain Poland and The Lorenz Bahlsen Snack-World. These are the main manufacturers of potato products such as French fries and potato chips operating in Poland.

The information obtained from President of UOKIK proves, among others, that the remuneration for potatoes delivered may be determined on the basis of unclear criteria allowing the purchasers to arbitrarily reduce its value which may be an instance of an unfair use of superior bargaining power.

- We’ve been informed that manufacturers of French fries and popular snacks, using their stronger market position, might have unilaterally impose some unfair conditions of cooperation onto farmers. We want to check those practices. Relationships on the agricultural and food market should be based on reliable rules. We will coherently fight against the practices which are in breach of good morals
and the ones infringing material interests of weaker market participants - says Tomasz Chróstny, President of UOKiK.

As part of the investigation, UOKIK will first and foremost check if the rights and duties are distributed equally between the two parties to a contract. In particular, this will pertain to the terms and conditions for the performance of deliveries, rules for determination of pay for farmers, including its individual components as well as the conditions of qualitative checks of the raw material supplied and imposition of contractual penalties.

The preliminary investigation is conducted in the case itself and not in relation to a specific entrepreneur. If the evidence collected confirms the suspicions, the President of the Authority will initiate the investigations in the unfair use of superior bargaining power and bring charges against individual entities. For the use of illegal practices an entrepreneur is at risk of a fine of maximum 3 percent of their annual turnover.

Farmer, entrepreneur, if you operate in the agricultural and food industry and your major counterparty abuses its competitive advantage by imposing unfavourable conditions of cooperation – report it to UOKiK. We have launched a special form to help you report any irregularities. Click here to fill it out: https://ankieta.uokik.gov.pl/formularz-zgloszenie-przewaga/.

Additional information for the media:

UOKiK Press Office
pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone: 22 55 60 246
Email: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL
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