The Estonian Competition Authority has issued precepts to Allium UPI OÜ, Magnum Medical OÜ, and Tamro Eesti OÜ, requiring the companies to cease using unfair trading practices in the purchase of dietary supplements.
During the supervision procedure, the Authority found that the wholesalers imposed contractual terms on suppliers that prevented compliance with the 30-day payment deadline mandated by law. Estonian legislation specifies that agricultural and food producers must receive payment within one month, ensuring they can manage working capital effectively. Practices that delay payment, such as tying the start of the payment period to the resale of goods, undermine the economic viability of producers and are prohibited.
The Authority also identified contractual clauses obliging suppliers to compensate the purchase price of expired or near-expiry products and to cover the costs of their destruction or handling. The Competition Authority concluded that these compensation agreements exceeded the legally permitted return of unsold goods and constituted a prohibited practice under the law.
The companies subject to precepts are required to adjust their contract terms to comply with legal requirements. The precepts are publicly available on the Competition Authority’s website.
The Estonian Competition Authority oversees state supervision in competition, electricity, natural gas, district heating, postal services, public water supply and sewerage, railways, aviation, and ports, while also enforcing rules against unfair trading practices in the agricultural and food supply chain. The Authority operates under the jurisdiction of the Ministry of Justice and Digital Affairs.
