Hungary’s farm ministry has prepared a proposal to fine supermarkets and hypermarkets up to 2 billion forints (EUR 7.7 m) if they demonstrate unfair practices against suppliers, business daily Vilaggazdasag said on Monday.
The fines would correspond to 5-15 percent of net revenue and the chains would also be obliged to pay 200 percent compensation for any damages, the paper said.
The ministry said the proposal would be submitted to parliament unless the chains agreed to sign a bilateral agreement on “well-intentioned business practices” and deal with suppliers in a “consciencous and professional” manner.
Under the agreement, the ministry wants to see the ceiling for late delivery fees reduced to 20 percent, while chains’ own-brand products should not be more than 20 percent cheaper than other brands. Chains would be obliged to sell at least 80 percent Hungarian goods as against the current 30 percent, the paper said.
The milk dairy council has already criticised the ministry’s agreement plan, stating that it is too general and does not include measures to enforce the agreement.
The agricultural ministry making a strong case for most stupid ministry against some stiff competition.