The Law on Trading Practices for Certain Types of Products (“Official Gazette of RS”, No. 35/26) introduces, for the first time in Serbia, rules governing trading relationships and establishes minimum standards of fair conduct aimed at protecting the weaker contracting party – agricultural producers and small suppliers.

The Law entered into force on 1 May 2026, except for the provision requiring contracts to be concluded in written form by 31 March, which will apply as of 1 January 2027.

What are “certain types of products”?

The Law applies to:

1. agricultural and food products across the entire supply chain, including perishable goods, and

2. products of particular importance for market supply, such as consumer goods (e.g. household and hygiene products) and certain inputs used in agricultural production.

The list of products shall be regulated in more detail by a by-law.

Contract rules

Contracts between buyers and suppliers must be concluded in writing no later than 31 March of the current year. The Law lists several exceptions when this rule may not apply.

Contracts must not contain vague or conditional provisions that grant one party discretionary power to subsequently determine financial obligations.

There is also a mandatory obligation to issue invoices clearly stating the legal basis and purpose of payment.

 What are unfair trading practices?

Unfair trading practices are practices arising from a significant imbalance in bargaining power, whereby one party unilaterally imposes terms that deviate from good commercial practice and unjustifiably transfer economic risk or create a disproportionate imbalance of rights and obligations.

The Law introduces a presumption of significant bargaining power on the part of the buyer where its revenue substantially exceeds that of the supplier, based on five revenue thresholds. Such power may also be established in other cases where the supplier proves its existence.

Blacklist and grey list of prohibited practices

Unfair practices are categorized as either absolutely prohibited (“blacklist”) or conditionally prohibited (“grey list”).

Absolutely prohibited practices are banned regardless of circumstances, agreement, or commercial justification. These include, among others:

– payment terms exceeding 30 days for perishable goods and 60 days for other agricultural and food products;
– unilateral amendments to key contractual terms (e.g. price, quantities, delivery conditions);
– requiring payments from suppliers unrelated to product sales or charging suppliers for loss or damage occurring at the buyer’s premises without supplier’s fault.

Conditionally prohibited practices are allowed only if the buyer demonstrates a legitimate commercial rationale and if they are clearly and expressly agreed in advance in writing. These include:

– returning unsold agricultural and food products without payment (subject to limited exceptions);
– charging suppliers unjustified fees or transferring buyer’s commercial costs (e.g. for storage, display, listing, and promotional activities carried out by the buyer);
– transferring monetary penalties, misdemeanour or administrative fines;
– unilateral termination of contracts without written justification and without at least 30 days’ notice, except in cases of insolvency or material breach.

Prohibition of commercial retaliation

Any form of commercial retaliation, or threat thereof, by the buyer against the supplier is prohibited where the supplier exercises its contractual or statutory rights or refuses imposed terms. This includes actions such as: product delisting, reduction of order volumes, or discontinuation of services normally provided to the supplier.

Measures by the Competition Authority

The Commission for Protection of Competition is competent to impose administrative measures for unfair trading practices, including financial penalties. Financial penalties are calculated as a percentage of the buyer’s annual turnover: 0.1% for grey list practices and 0.2% for black list practices and commercial retaliation.

Misdemeanour penalties

Legal entities may be fined between RSD 50,000 and RSD 2,000,000 for using vague provisions or failing to prepare a financial overview of contract elements, and a fixed fine of RSD 300,000 for failure to conclude contracts or issue required documentation. Responsible persons and individuals may be fined between RSD 50,000 and RSD 150,000.