The Latvian Competition Authority (KP) has found that retailers have only partially implemented the recommendations related to unfair and unjustified sanctions imposed on suppliers, prompting a call for more specific prohibited trading practices to be outlined to mitigate risks of violations of the Unfair Commercial Practices Prohibition Act.

In a recent market surveillance, KP identified eight risks in retailers' sanctions against suppliers for breaches of contract terms, highlighting discrepancies in perceptions between retailers and suppliers regarding these risks and the application of penalties.

KP emphasizes the need for clearer communication in contracts, particularly in cases of force majeure, and suggests that defining the 'agricultural and food product order' could enhance clarity and fairness in assessing penalties.