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Govʼt introduces protection for food suppliers

Hungaryʼs government has prohibited buyers of food and farm products from unilaterally changing contracts with suppliers, if the supplier objects to the modifications, Hungarian news agency MTI reports, citing a decree published in the latest issue of the official gazette Magyar Közlöny.

The decree classifies unilateral changes to supplier contracts that reduce prices or order volume, or result in the cancelation of deliveries as unfair trade practices, dependent upon the objection of the supplier.

It also specifically prohibits buyers from "threatening suppliers with means causing material or moral loss" with regard to sales or promotions.

The decree was issued in the framework of state-of-emergency measures to shield against economic fallout from the coronavirus pandemic.

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