• In the past three months, President of UOKiK issued 20 decisions on payment backlog cases. Since the beginning of the year, 50 decisions have been issued while the total amount of fines imposed has been more than PLN 33 million.
• In the fight against payment backlogs, President of UOKiK also uses soft measures.
• This means that he informs entrepreneurs of some irregularities spotted and the need to improve payment discipline - more than 100 entities have already received such letters.

President of UOKiK has been conducting administrative proceedings against entrepreneurs generating the largest payment backlogs and issuing further decisions in this regard. Since of the beginning of 2023, he has issued 50 decisions while the total amount of fines imposed on entrepreneurs amounted to more than PLN 33 million.

In the past three months, President of UOKiK imposed fines on 10 business entities totaling more than PLN 13 million. The fined entrepreneurs are as follows:

• AmRest - more than PLN 3.2 million,
• Boryszew - more than PLN 2.8 million,
• Brembo Poland - nearly PLN 1.8 million,
• Grupa Producentów Drobiu [poultry producer] - more than PLN 1.2 million,
• Hanplast - more than PLN 1.2 million,
• Hurtap - nearly PLN 1 million,
• Paccor Poland - nearly PLN 1 million,
• Polaqua - more than PLN 500 thousand,
• Grodno - more than PLN 290 thousand,
• Kuehne+Nagel - PLN 185 thousand.

- Among the entrepreneurs we have fined, there are large and well-known entities that should be models of reliable accounting with suppliers. Especially the largest entrepreneurs must be aware that by generating payment backlogs, they are disrupting smooth functioning of the economy, exposing themselves to financial sanctions. Based on the new regulations, fines will be even higher than before - stressed Tomasz Chróstny, President of UOKiK 

In the case of 10 business entities , President of UOKiK has also found the existence of payment backlogs but at the same time, in these cases, there were prerequisites obliging to waive the imposition of some monetary sanctions. Entrepreneurs were instructed about the consequences of further violations in this area, i.e. the possibility of imposing fines on them under the amended provisions of the Act on Prevention of Excessive Delays in Commercial Transactions. These business entities were as follows:

• Strabag,
• Rzeszowskie Zakłady Drobiarskie Res-Drob,
• Tele-Fonika Kable,
• Grupa Żywiec,
• CEDC International,
• CCC.EU,
• Budimex,
• Electrolux Poland,
• Polska Grupa Farmaceutyczna Urtica,
• Whirlpool Company Polska. 

100 soft recommendations since the beginning of the year

After the amendment to the financial backlog regulations made in December 2022, President of UOKiK may take so-called soft measures. This means that it has the ability to target entrepreneurs without first initiating administrative proceedings. The Authority communicates to companies the irregularities it has noticed in the area of their payment practices. At the same time, acting with the intention of disciplining entrepreneurs, it instructs about possible negative consequences for them in the absence of noticeable improvement. Having received the letter, the entrepreneur has the right to provide explanations and is given the opportunity to immediately improve the payment culture towards its contractors. This can protect it from possible financial sanctions for generating payment backlogs.

- The purpose of soft measures is to change the practices of entrepreneurs without the need to initiate proceedings. We inform business entities that their negligent payment to suppliers may violate the law and at the same time suggest to them a solution, i.e. to improve their payment discipline to their counterparties. We also warn that failure to change will mean a fine in the future- Tomasz Chróstny, President of UOKiK.

This year, more than 100 businesses have already received a signal from President of UOKIK about potential irregularities in their settlements with suppliers and the need to improve payment practices.

In response to the letters, entrepreneurs pointed to circumstances that may have contributed to the identified irregularities. At the same time, some of them said they would immediately review their procedures and take the necessary measures to improve payment discipline with contractors. Their practices will be subject to further analysis by the Authority. Administrative proceedings will be initiated against entrepreneurs who have not responded to the recommendations of President of UOKIK or who continue to create payment backlogs, the consequence of which may be the imposition of a fine on the business entity.

More on payment backlogs

The most important information about the powers of President of UOKIK in the area of payment backlogs can be found on a special website at https://zatoryplatnicze.uokik.gov.pl/. There is also detailed information on the amended provisions of the Act on Prevention of Excessive Delay in Commercial Transactions, including, among other things, those concerning soft recommendations by President of UOKIK and new rules for imposing administrative fines for excessive delay in monetary payments.

Additional information for the media:

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