Overview
On 23 April 2026, the Parliament of the Republic of Serbia adopted the Law on Trading Practices for Certain Types of Products (the “Law”). The Law introduces a comprehensive regime targeting unfair trading practices in supply chains and significantly expands compliance obligations for buyers operating in Serbia. The Law largely follows the logic of Directive (EU) 2019/633 on unfair trading practices in the agricultural and food supply chain, however, with certain differences, in particular in terms of the scope of application.
Scope of Application
The Law applies to relationships between suppliers and buyers in trade operating within the territory of Serbia, covering agricultural and food products, inputs used in agricultural production, and a wide range of essential consumer goods (including household chemicals, hygiene products, and similar items).
Importantly, the Law applies to practices at all stages of the supplier-buyer commercial relationship, from contract negotiations and supply terms to the performance and termination of commercial arrangements.
What Constitutes an Unfair Trading Practice?
The Law defines unfair trading practices as conduct arising from an imbalance in bargaining power that leads to unfair or disproportionate terms, including unjustified risk transfer or material imbalance of rights and obligations.
The existence of a significant bargaining power imbalance on the part of the buyer is presumed based on a tiered revenue threshold system set out in the Law.
The Law draws a clear distinction between the following categories of prohibited practices:
- Absolutely prohibited practices (black list): Prohibited unconditionally, regardless of any agreement or commercial justification. They include, among others, late payment beyond prescribed deadlines, unilateral amendment of contract terms, cancellation of orders for perishable products with less than 30 days’ notice, and unlawful acquisition or disclosure of a supplier’s trade secrets.
- Conditionally prohibited practices (grey list): Presumed to constitute unfair practices unless the buyer demonstrates otherwise. Examples include returning unsold products without payment, charging fees for routine product display, imposing unilateral listing fees, or transferring regulatory fines to the supplier. These practices must be clearly and expressly agreed in advance in writing, placing a higher burden on buyers to properly document their commercial arrangements.
- Commercial retaliation: The Law expressly prohibits any commercial retaliation, or threat thereof, against a supplier for exercising its contractual or statutory rights. Such conduct is treated as a particularly serious form of unfair trading practice.
The Law also introduces a mandatory contractual document, a so-called overview of financial elements, which consolidates all monetary terms of the relationship, including prices, rebates, fees, penalties and other financial obligations, and must be updated whenever any of those elements change.
Enforcement
Enforcement is entrusted to the Commission for Protection of Competition (the “Commission”), which will establish a dedicated organisational unit for these proceedings and may adopt implementing bylaws and guidance. Proceedings are initiated by the Commission acting ex officio, including on the basis of initiatives submitted by any interested party.
Sanctions
The Law establishes a layered sanctions regime. The Commission may impose temporary cessation measures, compliance measures and protection measures (in substance, fines), set at 0.1% for grey-list practices and 0.2% for black-list practices and commercial retaliation. The base amount is subject to adjustment in light of mitigating and aggravating circumstances and may be increased by up to 100% in the case of repeat infringement. Although the percentages appear modest, the fines are calculated on the buyer’s total annual turnover in Serbia, which may result in significant exposure for large retailers and distributors.
In addition, misdemeanour fines of up to approx. EUR 18,000 may be imposed on legal entities for certain breaches of the Law.
The Law also introduces a whistleblower reward. Namely, individuals supplying decisive evidence of an unfair practice to the Commission may be entitled to a reward of 5% of the fine imposed, payable once the decision becomes enforceable.
Next Steps
Every company in the supply chain of products covered by the Law will need to align its general terms and conditions, contracts, internal guidelines, and practices with the Law within four months of its entry into force. The Law enters into force on the eighth day following publication in the Official Gazette of the Republic of Serbia, with certain provisions relating to mandatory written contracts and the overview of financial elements taking effect from 1 January 2027.
Businesses active in Serbia’s food, agricultural, and consumer goods supply chains should therefore review and, where necessary, update their existing agreements and commercial practices to ensure compliance with the new requirements.
FAQ
When did the Law enter into force? Adopted on 23 April 2026, entering into force eight days after publication in the Official Gazette, with certain provisions applying from 1 January 2027.
What does the Law cover? Agricultural and food products, inputs used in agricultural production, and essential consumer goods such as household chemicals and hygiene products.
What is the difference between black list and grey list practices? Black list practices are unconditionally prohibited. Grey list practices are presumed prohibited unless clearly agreed in writing in advance.
What is the overview of financial elements? A mandatory document consolidating all monetary terms of the commercial relationship, which must be updated whenever any of those elements change.
Who enforces the Law? The Commission for Protection of Competition, through a dedicated organisational unit.
How are fines calculated? At 0.1% for the grey list and 0.2% for the black list practices, based on the buyer’s total annual turnover in Serbia.
Is there a whistleblower mechanism? Yes, individuals supplying decisive evidence of an unfair practice may receive a reward of 5% of the fine imposed.
What should businesses do and by when? Contracts, general terms and internal practices should be aligned with the Law within four months of its entry into force.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
