Georgian Government prepares draft bill to outlaw unfair trading practices in food supply chain

The Government of Georgia is preparing a draft law “On the Prohibition of Unfair Trading Practices in the Food Supply Chain”.

While the executive branch has not elaborated on the finer details of the legislative proposal submitted to Parliament, it pointed to a substantial imbalance in bargaining power within the country’s food supply chain.

“Buyers unilaterally and unfairly impose terms on suppliers, such as delayed payments, late order cancellations, and forcing listing or marketing fees onto suppliers, thereby threatening the sustainability of the food chain. Specialised legislative regulation is required to exhaustively list strictly prohibited and conditionally permissible trading practices. The draft bill will designate the enforcement authority, define its powers, and establish an effective, proportionate, and deterrent penalty system,” the document reads.