New Legislative Regulations for Trade Networks and Suppliers

The Competition Protection Commission informs that the maximum time limits for payments for supplied goods have been established. On January 16, 2024, the National Assembly adopted and published the laws on amendments to the 'Law on Trade and Services' and the 'Law on Protection of Economic Competition.'

These legislative changes set fair trade rules to regulate various issues in the supply relations between small and medium-sized enterprises and trade networks. Specifically, they address late payments, unjustified refusals to sign contracts, and the unequal display of goods.

According to the new regulations, trade networks are required to:

• have an official website where minimum requirements and principles for selecting a potential supplier's product, a list of goods for sale, conditions for displaying the product, and grounds for terminating supply relations must be published;
• sign a written contract with the supplier that must include at least the contract price, payment terms, deadlines, or methods for determining them;
• make payments to the supplier for food products no later than 30 days and for non-food products no later than 60 days.

Moreover, payments exceeding 3 million drams that are delayed for 90 calendar days or more may lead to the abuse of negotiating advantages, for which the Commission may impose a fine on the operating entity of up to ten percent of the revenue from the previous year corresponding to the violation.

The aforementioned regulations will come into effect on May 6, 2024. The Competition Protection Commission reminds that the package of legislative reforms was developed in collaboration with the Ministry of Economy and the World Bank's Investment Council in Armenia.