Act No. XCV of 2009 on the prohibition of unfair distribution practices against suppliers of agricultural and food products.

The Act concerns the business relationship between retailers and suppliers and aims to establish a commercially balanced relationship between the parties. The Act generally prohibits unfair distribution practices against suppliers and also enumerates the practices considered to be unfair. The control of the execution of the Act is the duty of the National Food Chain Safety Office (the “Authority”). The most important consequences for a breach of the Act are the following: all contractual clauses contrary to the prohibitions set out in the Act are null and void; the Authority may impose a fine up to HUF 500 million (maximum 10% of the last year’s turnover) and up to HUF 2 billion for ‘recidivists’; a ‘blacklist’ with the names of the retailers (with company data, nature of the infringement, amount of the fine imposed) infringing the prohibitions set out in the Act is to be published on the website of the Authority.