First experiences with the Danish Act on Unfair Food Practices

28 January 2025

The Danish Act on Unfair Food Practices (“The UTP Act”) came into force on 1 July 2021, implementing the EU UTP Directive (2019/633). The aim is to regulate unfair trading practices in relations between businesses in the agricultural and food supply sector. Under the UTP Act, some trading practices are always prohibited (the black list), while other trading practices are prohibited unless the parties have entered a clear and unambiguous agreement (the grey list).

Evaluation of the UTP Act: Focus areas and approach

The Danish Competition and Consumer Authority monitors the effects of the UTP Act and came with their first evaluation in November 2024.

The evaluation focusses on six areas:

  1. The impact on the competitiveness of Danish suppliers
  2. Risk of smaller suppliers not being selected
  3. The development of consumer prices
  4. Unwanted effects on rural areas and local areas
  5. The potential effect for companies to use credit facilitation

The evaluation is based on questionnaires sent to relevant companies, interviews and ongoing dialogue with business organizations and analysis of relevant figures and data.

Status on UTP in Denmark

The evaluation only shows limited signs of unfair trading practices. The reason is that companies have largely adapted their business practices to the rules in the UTP Act. When challenges do arise, suppliers, buyers and business organizations mostly handle disagreements through dialogue rather than formal complaints.

Based on the results of its monitoring and evaluation of the UTP Act, the authority concludes that the UTP Act adequately fulfils the purpose of the underlying UTP Directive.

Only one UTP complaint

Since the law came into force on 1 July 2021, the authority have only received one complaint concerning a violation of the UTP Act. The complaint was later withdrawn. Therefore, no decisions have yet been passed on unfair trading practices.

UTP in Denmark: Always room for improvement

Although there has only been one complaint, there is room for improvement. This is the opinion of several business organizations, which especially highlight three types of trading practices where companies are experiencing challenges:

  1. Suppliers are charged for services or conditions that are not directly related to the sale of agricultural and food products.
  2. Buyers make unilateral changes to the supply agreement.
  3. Suppliers are required to cover deterioration or loss, even if the deterioration or loss is due to the buyer’s negligence or fault.

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Andreas Christensen and Marie Løvbjerg, Horten