Background & Purpose
The original law from 2021 was created to protect food producers from unfair trading practices. This update ensures that Sweden fully follows the EU's UTP directive, which aims to prevent large buyers from leaving suppliers with unsold goods.
The Decision
The Swedish parliament decided to expand the ban on late cancellations, meaning buyers can no longer cancel orders even with 30 days' notice if the supplier cannot reasonably find another way to sell the products.
Does this affect you?
- Food producers: Farmers and food suppliers get stronger legal protection against sudden order cancellations that could otherwise lead to food waste and financial loss.
- Large food buyers: Large companies, municipalities, and government agencies must now plan their purchases more carefully to avoid breaking the law when cancelling orders.
In Practice
- Large food companies, municipalities, and government agencies face stricter rules when cancelling orders.
- Cancellations made with 30 days' notice or more may now be prohibited if the supplier is left with products they cannot sell elsewhere.
- The change ensures that food producers are not unfairly burdened by sudden changes in demand from large buyers.
- These rules apply to perishable goods like meat, fish, eggs, and milk.