B 2078
L.N. 266 of 2021
SUPPLIES AND SERVICES ACT 
(CAP. 117)
Unfair Trading Practices in the Food Supply 
Chain Regulations, 2021
IN EXERCISE of the powers conferred by article 3 of the
Supplies and Services Act, the  Minister for the Economy and Industry,
has made the following regulations:-
Citation, scope 
and 
applicability. 1. (1) The title of these regul ations is the Unfair Trading
Practices in the Food Supply Chain Regulations, 2021.
(2) The scope of these regulations is to transpose and
implement Directive (EU) 2019/633 of the European Parliament an d
of the Council of 17 April 2019 on unfair trading practices in business-
to-business relationships in th e agricultural and food supply c hain, as
may be in force from time to time.
(3) These regulations shall apply according to sub-regulations
(4) and (5), and the responsibilities, functions, obligations a nd rights
provided according to these regulations shall only be applicabl e
accordingly:
Provided that the Board sha ll consider all complaints
received for investigation and in such cases the Board may only  issue
recommendations:
Provided further that these r egulations shall not apply to
agreements between suppliers and consumers.
(4) These regulations apply to c ertain unfair trading practices
which occur in relation to the sale of agricultural and food pr oducts
whenever the supplier and, or buyer is based in Malta, and when  such
sales are effected by:
(a) suppliers which have an annual turnover not
exceeding two million euro (€2,000,000) to buyers which have
an annual turnover of more th an two million euro (€2,000,000);
(b)  suppliers which have an annual turnover of more
than two million euro (€2,000,000) and not exceeding tenmillion euro (€10,000,000) to buyers which have an annual
turnover of more than t en million euro (€10,000,000);
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(c) suppliers which have an  annual turnover of more than
ten million euro (€10,000,000) and not exceeding fifty million
euro (€50,000,000) to buyers which have an annual turnover ofmore than fifty million euro (€50,000,000); 
(d) suppliers which have an a nnual turnover of more than
fifty million euro (€50,000,000) a nd not exceeding one hundred
and fifty million euro (€150,000,000) to buyers which have an
annual turnover of more than one and hundred fifty million euro
(€150,000,000); and
(e) suppliers which have an a nnual turnover of more than
one hundred and fifty million euro (€150,000,000) and notexceeding three hundred and fifty million euro (€350,000,000) to
buyers which have an annual turnover of more than three
hundred and fifty million euro (€350,000,000):
Provided that the annual turnover of the suppliers and
buyers referred to in paragraphs  (a) to (e) shall be understood  in
accordance with the relevant pa rts of the Annex to Commission
Recommendation 2003/361/EC of 6 May 2003 concerning the
definition of micro, small and medium-sized enterprises and in
particular Articles 3, 4 and 6 ther eof, including the definitio ns of
"autonomous enterprise", "partn er enterprise" and "linked
enterprise", and other issues r elating to the annual turnover:
Provided further that these  regulations shall also
apply in relation to sales of agricultural and food products by
suppliers which have an annual turnover not exceeding threehundred and fifty million euro (€350,000,000) to all buyerswhich are public authorities.
(5) These regulations shall also apply to services, insofar as
explicitly referred to in regulation 8, provided by the buyer t o the
supplier.
Interpretation. 2. (1) For the purposes of these regulations, unless the
context requires otherwise, the following definitions shall app ly:
Cap. 117. "Act" means the Supplies and Services Act;
"agricultural and food products"  means products listed in Annex
I to the Treaty on the Function of the European Union, as well as
products not listed in that Anne x, but processed for use as food using
products listed in that Annex;
"Board" means the board establi shed according to regulation 3;
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Cap. 460. "buyer" means any natural or leg al person, irrespective of that
person's place of establishment, or any public authority in the
European Union as defined under the European Union Act, who buy s
agricultural and food products a nd the definition "buyer" may i nclude
a group of such natural and legal persons;
"Directive" means the Directiv e (EU) 2019/633 of the European
Parliament and of the Council of 17 April 2019 on unfair tradingpractices in business-to-busines s relationships in the agricult ural and
food supply chain, as may be in f orce from time to time;
"perishable agricultural and food products" means agricultural
and food products that by their n ature or at their stage of processing
are liable to become unfit for s ale within thirty (30) days aft er harvest,
production or processing;
"public authority" means national, regional or local authoritie s,
bodies governed by public law or associations formed by one (1)  or
more such authorities or one (1) or more such bodies governed b y
public law;
"recommendations" means suggestions issued by the Board to
anyone concerned in an investigation, but said suggestions shal l not
include any order or obligation;
"Sectoral authorities" means th e departments, or other public
bodies, responsible for fisheries, aquaculture and agriculture;
"supplier" means any agricultural producer, fisherman or any
natural or legal person, irresp ective of their place of establi shment,
who sells agricultural and food products and the term ‘supplier ’ may
include a group of such agricult ural producers, fishermen or a group of
such natural and legal persons, such as producer organisations,
organisations of suppliers and associations of such organisations.
(2) Save as otherwise provided in this regulation, the
definitions of the Act and the Directive shall apply to these
regulations:
Provided that should a definition be provided in the
Directive, such defin ition shall prevail and apply accordingly for the
purposes of these regulations.
Unfair Trading 
Practices (Agriculture and 
Fisheries) 
Board.3. (1) There shall be an Unfair Trading Practices
(Agriculture and Fisheries) Board, acting as the enforcement au thority
for the purposes of the Directive, in accordance with these reg ulations.
(2) The Board shall consist of seven (7) members, appointed
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by the Minister responsible for trade upon a recommendation by the
Minister responsible for agri culture and fisheries, being:
(a) an advocate having at leas t five (5) years professional
experience who shall preside ove r the proceedings of the Board
and have a casting vote in additio n to his original vote in cas e of
equality of votes;
(b) a representative of the department responsible for
agriculture;
(c) a representative of th e department responsible for
fisheries and aquaculture;
(d) a representative of the department responsible for
commerce;
(e) a member, whether a public officer or not, having
adequate expertise in matters rel ating to the markets concerned ,
its operators, the situation of  suppliers and the trading pract ices
involved as affecting suppliers ba sed in Malta in particular; and;
(f) two (2) other members recommended by the Minister
responsible for fisheries and agriculture:
Provided that the Board shall be assisted by a
registrar who shall assist the B oard as its secretary and shall  be
responsible for its documenta tion and for all communications
necessary according to these regulations, as may be instructed by
the board:
Provided further that the registrar shall not be a
member of the Board and shall no t have the right to vote in its
proceedings:
Provided further that the Board shall decide on its
matters by simple majority and provided that at least four (4)
members are present or otherwise  express their vote in writing,
and said four (4) members shall always include the
representative of the department responsible for agriculture or
the representative responsible for fisheries and aquacultureaccording to the specific sector relevant to the case being
discussed:
Provided further that the members of the Board shall
not be entitled to vote if they have a conflict of interest or were
involved in any investigation or complaint in any capacity
beyond that of member of the Board.
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(3) All representatives referred in sub-regulation (2) shall be
nominated by the respective body, and all members of the board shall
serve for a period of three (3) years from the date of appointm ent:
Provided that all members may resign their position by a
notice in writing submitted to the Minister.
(4) The Minister responsible for agriculture and fisheries may
determine any remuneration due to Board members and the registr ar,
unless the same are public officer s who may serve on the Board by
virtue of their office.
(5) The Board shall have  all powers, functions and
responsibilities to be given to an enforcement authority or per formed
by it according to the Directive, in particular those under Art icles 6
and 8 of the Directive:
Provided that any sanctioning shall be according to the
provisions of these regulations.
(6) The Board may require and shall receive the
assistance of sectoral authorities in performing an investigati on, and
for so doing may give such directions as may be reasonable for the
purposes of an investigation:
Provided that for such assist ance, the Board shall liaise
with the relevant head of depart ment or any delegated appointed  by the
latter to liaise with the Board for the purposes of these regul ations:
Provided further that ass istance according to these
regulations shall also include the exercise of any power given to the
relevant department, or its officers, at law.
(7) The Board may request and shall be provided with any
information held by the sectoral  authorities and from any perso n in any
manner involved, concerned or regulating the sectors affected b y the
Directive or having an interest therein:
Provided that all information so requested shall be deemed
confidential for all intents a nd purposes at law and may not be
disclosed by the Board unless required by these regulations, by  t h e
Directive or by any other law, or unless such disclosure is ord ered by
any competent authority.
(8) In the exercise of its functions according to these
regulations, the Board shall act independently and not be subje ct to the
control of any other person or authority in said exercise and i n its
conclusions on any complaint and, or investigation.
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Functions of the 
Board.4. (1) The Board shall act as the enforcement authority
according to the Directive and th ese regulations, with a view t o
advancing the purposes of the D irective according to its subjec t matter
and scope, and without prejudice to the generality of the foreg oing it
shall:
(a) discuss, suggest and publish best practices to be
adopted by sectoral authoritie s and operators to avoid the
possibility of, or halt the continuation of, practices which ar e
contrary to the Directive or which hinder its purposes;
(b) suggest minimum requirements for complaint forms
to be received by it from market operators;
(c) provide advice to the sectoral authorities for the
purpose of achieving the goals of the Directive and these
regulations;
(d) generally assist, coordina te and instruct the sectoral
authorities for the purposes of these regulations, in relation to
any complaint, investigation or query submitted according to
these regulations;
(e) indicate to the sectoral authorities any evidence that it
might be deemed advisable to gather for the purposes of anyinvestigation according t o these regulations;
(f) provide recommendations on the manner in which a
sectoral authority may exercise its functions so as to hinder thedevelopment or continua tion of prohibited practices;
(g) initiate and conduct investigations on its own
initiative or on the basis of a c omplaint falling within the sc ope
of the Directive;
(h) investigate any complaint on any alleged unfair
trading practice as received from a supplier and determine
whether the complaint falls under the scope of the Directive;
(i) provide its decision on any investigation falling
within the scope of the Direct ive to those concerned by it,
whether such decision resulted from a complaint, or whether it
was initiated according to its own discretion; 
(j) give all those orders as may be given by an
enforcement authority according to the Directive, in particularthe order to stop any prohibited practice; and
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(k) act as the single contact point for the purposes of the
Directive.
(2) The Board, and a sector al authority acting upon its
instructions, may: 
(a) require the provision of any information and, or
document from any person which they deem relevant to any
investigation; and
(b) conduct inspections on the premises of any operator.
(3) Without prejudice to any conf identiality obligations under
these regulations, the Directive and at law, the Board shall publish itsdecisions and may do so at regular intervals, whether individua lly or as
part of a collection of decisions.
(4) When acting as the single contact point and as an
enforcement authority, the Board shall do all that is required by the
Directive to fulfil said funct ion, inclusive of submission of r eports as
referred in the Directive, as well as participating in all disc ussions with
the European Commission, as provided by the Directive.
(5) For the purposes of sub-re gulation (4) the Board may
require that it be provided with  any information or documents k nown
or held by the sectoral  authorities, if it deems it necessary o r expedient
to fulfil those purposes.
Procedures of 
the Board.5. Save as otherwise provided in t hese regulations, the Board
shall regulate its own procedures and meet at least once each c alendar
year.
Complaints by 
suppliers.6. (1) Suppliers may submit complaints on alleged unfair
trading practices to the relevan t sectoral authority or to the Board:
Provided that a sectoral authority shall, upon receipt, refer
the complaint to the Board:
Provided further that a complai nt shall be considered only
if the supplier and, or the buyer are based or operate in Malta  or the
alleged unfair trading practices are performed, in whole or in part, in
Malta.
(2) Complaints shall be submitted in writing, and the
complainant shall sign the complaint:
Provided that nothing in this r egulation shall be construed
as hindering any person from providing anonymous information to  the
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Board or a sectoral authority, and likewise nothing in this reg ulation
shall be construed as hindering the Board in investigating any such
information at its own discreti on and according to these regulations.
(3) The Board shall inform the complainant that it is
considering his complaint at the  latest within twenty (20) work ing days
from receipt of the complaint, and it shall update the complain ant on
the status of the investigation and the outcome thereof at reas onable
intervals and upon the conclu sion of the investigation.
(4) Without prejudice to regulation 5, the Board may allow, or
require, the complainant to amend his complaint so as to clarif y the
complaint itself, the facts relevant to it or to the practices complained
of.
(5) Submission of complaints according to these regulations
shall be subject to a fee of fifty euro (€50) payable to the Bo ard.
The Secretary of the Board, or any other public officer as may be
delegated by the Board from amongst those referred under sub-regulation (2) of regulation 11, shall be responsible for the processingand collecti on of said fee.
Confidentiality 
of complaints.7. (1) Upon the request of the complainant, the Board and
the relevant sectoral authority shall take the necessary measur es for the
appropriate protection of the identity of the complainant or an yone
else concerned, and for the appropriate protection of any other
information the disclosure of which is specifically indicated b y the
complainant as harmful to his interests or to those of anyone e lse
concerned.
(2) Whenever the provisions of th is regulation are applicable,
the Board may abstain from taking any decision if that would ri sk
revealing the identity of a complainant or would risk disclosing anyother information in respect of which the complainant considers  that
such disclosure would be harmful to his interests or to those o f anyone
else concerned:
Provided that the complainant  shall identify the relevant
information according to sub-regulation (1).
Prohibited 
practices.8. (1) The following unfair trading practices shall be
prohibited:
(a) without prejudice to sub-regulation (2), the buyer
pays the supplier, where the supply agreement provides for the
delivery of products: 
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(i) if said delivery is on a regular basis and it
concerns perishable agricultural and food products, later
than thirty (30) days after the end of an agreed deliveryperiod in which deliveries have been made or later than
thirty (30) days after the date on which the amount payable
for that delivery period is set , whichever of those two dates
is the later;
(ii) if said delivery is  on a regular basis and it
concerns other agricultural and food products, later than
sixty (60) days after the end of an agreed delivery period in
which deliveries have been made or later than (60) daysafter the date on which the amount payable for that delivery
period is set, whichever of those two dates is the later;
(iii) if said delivery is not on a regular basis and it
concerns perishable agricultural and food products, laterthan thirty (30) days after the date of delivery or later than
thirty (30) days after the date on which the amount payableis set, whichever of those two dates is the later; or
(iv) if said delivery is not on a regular basis and it
concerns other agricultural and food products, later thansixty (60) days after the date of delivery or later than sixty
(60) days after the date on which the amount payable is set,
whichever of those two dates is the later:
Provided that for the purposes of the payment
periods in sub-paragraphs (i) a nd (ii), the agreed delivery
periods shall in any event be considered not to exceed one(1) month:
Provided further that for the purposes of points
(iii) and (iv), where the buyer sets the amount payable, thepayment periods referred to in su b-paragraph (iii ) shall start
to run from the end of an agreed delivery period in whichthe deliveries have been made, while the payment periodsreferred to in sub-paragraph (i v) shall start to run from the
date of delivery:
Cap. 13. Provided further that paragraph (a) shall be
without prejudice to the conse quences of late payments and
remedies as provided according to the Commercial Code,which shall apply, by way of derogation from the payment
periods set out in the Commercial Code, on the basis of the
payment periods set out in these regulations:
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Provided further that paragraph (a) shall be
without prejudice to the opti on of a buyer and a supplier to
agree on a value sharing clause within the meaning of
Article 172a of Regulation (EU) No 1308/2013;
(b) the buyer cancels orders o f perishable agricultural
and food products at such shor t notice that a supplier cannot
reasonably be expected to find an alternative means of
commercialising or using those products: 
Provided that a notice of less than thirty (30) days
shall always be considered as a short notice;
(c) the buyer unilaterally ch anges the terms of a supply
agreement for agricultural and food products that concern thefrequency, method, place, timing or volume of the supply or
delivery of the agricultural  and food products, the quality
standards, the terms of payment or the prices, or as regards th e
provision of services insofar as these are explicitly referred to in
sub-regulation (2);
(d) the buyer requires payments from the supplier that are
not related to the sale of the  agricultural and food products o f the
supplier;
(e) the buyer requires the supplier to pay for the
deterioration or loss, or both, of agricultural and food produc ts
that occurs on the buyer's premises or after ownership has beentransferred to the buyer, where such deterioration or loss is not
caused by the negligence or fault of the supplier;
(f) the buyer refuses to confirm in writing the terms of a
supply agreement between the buye r and the supplier for which
the supplier has asked for writt en confirmation save if the sup ply
agreement concerns products to be delivered by a member of a
producer organisation, including a cooperative, to the producerorganisation of which the supplier is a member, if the statutes  of
that producer organisation or the rules and decisions provided for
in, or derived from, those statutes contain provisions havingsimilar effects to the terms of the supply agreement;
(g) the buyer unlawfully acquires, uses or discloses the
trade secrets of the supplier w ithin the meaning of Directive
(EU) 2016/943 of the European Parliament and of the Council of
8 June 2016 on the protection of undisclosed know-how and
business information (trade sec rets) against their unlawful
acquisition, use and disclosure;
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(h) the buyer threaten s to carry out, or c arries out, acts of
commercial retaliation agains t the supplier if the supplier
exercises his contractual or leg al rights, including by filing a
complaint with enforcement aut horities or by cooperating with
enforcement authoritie s during an investigation;
(i) the buyer requires compensation from the supplier for
the cost of examining customer complaints relating to the sale of
the supplier's products despite t he absence of negligence or fa ult
on the part of the supplier;
(j) trading practices falling under the provisions of the
proviso of paragraph (c) of sub-regulation (3).
(2) Paragraph (a) of sub-regul ation (1) shall not apply to
payments:
(a) made by a buyer to a supplier where such payments
are made in the framework of  the school scheme pursuant to
Article 23 of Regulation (EU) No 1308/2013;
Cap. 13.(b) made by public entities providing health care
according to article 26D of the Commercial Code;
(c) made under supply agreements between suppliers of
grapes or must for wine production and their direct buyers:
Provided that specific terms of payment for the sales
transactions are included in standard contracts which have been
made binding pursuant to Article 164 of Regulation (EU) No
1308/2013 before 1 January 2019, and that this extension of the
standard contracts is renewed from that date without any
significant changes to the terms of payment to the disadvantage
of suppliers of grapes or must, and that the supply agreementsbetween suppliers of grapes or must for wine production and
their direct buyers are multiannual or become multiannual. 
(3) The following practices shall be prohibited unless they
have been previously agreed in clear and unambiguous terms in t he
supply agreement or in a subse quent agreement between the supplier
and the buyer:
(a) the buyer returns unsold agricultural and food
products to the supplier without paying for those unsold produc ts
or without paying for the disposal of those products, or both;
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(b) the supplier is charged p ayment as a condition for
stocking, displaying or listing its agricultural and food produ cts,
or of making such products a vailable on the market;
(c) the buyer requires the supplier to bear all or part of
the cost of any discounts on ag ricultural and food products tha t
are sold by the buyer as part of a promotion:
Provided that this trading pr actice shall be prohibited,
notwithstanding an agreement as aforesaid, unless the buyer,
prior to a promotion that is initiated by the buyer, specifies the
period of the promotion and the expected quantity of theagricultural and food products to be ordered at the discountedprice;
(d) the buyer requires the supplier to pay for the
advertising by the buyer of agr icultural and food products;
(e) the buyer requires the supplier to pay for the
marketing by the buyer of agricultural and food products;
(f) the buyer charges the supplier for staff for fitting-out
premises used for the sale of the supplier's products.
(4) Upon determining that a prohibited practice according to
this regulation is in effect between a supplier and a buyer, th e Board
shall order their immediate cessation.
Provision of 
estimates.9. Where a payment is required by the buyer for the situations
referred to in paragraphs (b), (c ), (d), (e) or (f) of sub-regu lation (3) of
regulation 8, if requested by th e supplier, the buyer shall pro vide the
supplier with an estimate in writ ing of the payments per unit o r the
overall payments, whichever is appropriate, and, insofar as the
situations referred to in paragraphs (b), (d), (e) or (f) of su b-regulation
(3) of regulation 8 are concerne d, shall also provide, in writi ng, an
estimate of the cost to the supp lier and the basis for that est imate.
Mandatory 
provisions.10. Notwithstanding any other law,  any prohibition according
to regulation 8 shall constitute overriding mandatory provision s which
are applicable to any situation falling within the scope of tho se
prohibitions, irrespective of the  law that would otherwise be a pplicable
to the supply agreement between the parties.
Proceedings and 
damages.11. (1) Without prejudice to sub-regulation (7), if the Board
determines that an unfair trading practice falling within the s cope of
the Directive is in place to the detriment of a supplier, it ma y draw up a
report on the facts relevant to the complaint and, or investiga tion, and
the findings thereof, and said r eport shall include a descripti on of the
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relevant unfair trading practi ces and a quantification, by way of
estimate, of the damages suffered and to be suffered by the sup pliers
up to the cessation of the unfair trading practice.
(2) For the purposes of sub-regulation (1) the Board may invite
the parties concerned to a mediation procedure in front of the Board so
as to come to an agreed report and a quantification of damages.
(3) If the parties concerned agree with the conclusions of the
report referred in this regulati on and the damages therein esti mated,
they may come to a written agreement appr oved, witnessed and si gned
by a duly authorised representative of the Board, and by which said
damages are liquidated in satisfaction of all claims related to  the unfair
trading practices between the concerned parties:
Provided that said agreemen t shall allow for partial
payments to be made as may be ag reed and approved according to this
regulation:
Provided further that said agreement may provide for daily
penalties for events of default:
Provided further that upon the expiry of any term provided
in said agreement or in default of any payment therein agreed, the
agreement shall be considered as an executive title for all int ents and
purposes at law.
(4) Any mediation procedure or  agreement according to this
regulation shall be subject to a  temporary cessation of the pra ctice
determined as being an unfair tr ading practice while the mediat ion is
underway and during the relevant period of the agreement reached.
(5) Should the parties concerned agree as provided according
to sub-regulation (3), and should the unfair trading practice concerned
have been definitely ended, no further action of any nature wha tsoever,
inclusive of proceedings accor ding to regulation 12 or any othe r law,
shall lie against the party otherwise liable.
(6) In the absence of any agreement according to the preceding
sub-regulations, the Board shall proceed to finalise its report  a n d
provide it to the concerned part ies and anything done according  t o
these regulations shall be wit hout prejudice to any right pertaining to
the concerned parties.
(7) The supplier and, or the buyer, may contest the finding, or
lack thereof, of an unfair trading practice by the Board by app lication
to the Administrative Review Tribunal within twenty (20) days f rom
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said finding being final according to these regulations, and fo r such
purposes the Administrative Rev iew Tribunal shall be deemed to have
jurisdiction according to law:
Provided that if the Administrative Review Tribunal
determines that an unfair trad ing practice has occurred, it sha ll also
liquidate the damages suffered by the supplier, with interest a ccording
to law.
Offences. 12. (1) Any person who hinders or obstructs, in any manner
whatsoever, the Board or a sectoral authority, as well as any p erson
appointed by the same, in the exercise of their functions accor ding to
these regulations, or fails to co llaborate in an investigation according
to these regulations, shall be guilty of an offence and be liab le to a fine
(multa) not exceeding two thousand three hundred and twenty-nine
euro and thirty-seven cents (€2,329.37).
(2) Any person who when ordered by the Board to cease an
unfair trading practice persists in such a practice, and failing an
agreement according to regulation 11, shall be guilty of an off ence and
be liable to a fine ( multa ) not exceeding two thousand three hundred
and twenty-nine euro and thirty-seven cents (€2,329.37) or a fi ne
calculated on the profit made by the offender in connection wit h the
transaction in contravention to these regulations:
Provided that when the fine is so calculated, it may not
exceed five times the pr ofit made by the offender.
(3) Any criminal proceeding accor ding to this regulation shall
only be initiated upon a complaint by the Board.
Representation 
and staff.13. (1) Judicial and legal repre sentation of the Board shall
vest in its chairperson, or any other member as duly authorised  by the
Board.
(2) The Board shall be assisted by such staff, being public
officers, as may be assigned to it by the Minister responsible for
fisheries and agriculture.
Transitory provisions. 14. (1) All supply agreements in force upon the coming into
force of these regulations and falling within the scope of thes e
regulations shall comply with t he provisions of these regulatio ns
within one (1) calendar year fro m the date of entry into force of these
regulations.
( 2 ) T h e  B o a r d  m a y  o r d e r  o p e r a t o r s  t o  c o m p l y  w i t h  t h e
provisions of these regulations b efore the end of the period re ferred in
sub-regulation (1) and in the abs ence of such order, all operators shall
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Ippubblikat mid-Dipartiment tal-Informazzjoni (doi.gov.mt) — Valletta — Published by the Department of Information (doi.gov.mt) — Valletta
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comply with the provisions of the Directive within said period.
(3) Any person who fa ils to comply with the provisions of  sub-
regulations (1) and (2) shall be guilty of an offence and mutatis
mutandis shall be liable to the fines ( multi ) provided under sub-
regulations (1) and (2) of regulation 12.
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