On June 30, the Council of Ministers of Spain presented a preliminary draft law intended to change the Food Chain Law. The goal is to continue striving for a greater balance in the relations between the various links in the agro-food chain (producers, industry and supermarkets), as reported by Minister of Agriculture, Fisheries and Food Luis Planas.
In the press conference after the Council, the Minister explained that the draft "expands the list of products affected by the regulations, as well as the number of commercial practices considered unfair, such as, for example, those related to contract cancellations. It also incorporates sanctions," said Planas.
The processing of the preliminary draft has just started and the goal is for the new law to be approved this fall, according to the Minister.
The modification of this regulation is the second in 2020, since the Government had already approved another change in February which introduced the obligation of having written contracts and the application of sanctions for serious offenses, like sales at a loss.
Other measures included in the preliminary draft establish that any transaction between food chain operators that has partially taken place in Spain will have community coverage; also, the number of products covered by the law will be expanded, and contracts will be compulsory in more situations.
Expansion of the blacklist and the graylist
Regarding unfair commercial practices, the Government has expanded the blacklist, which features those that are banned, and the graylist; that is, those that are tolerable if they have been set in the contract signed by all parties. The preliminary draft has introduced new punishable infractions and includes all the vetted commercial practices.