What are your rights under supplier terms and conditions?


Questioner

A supplier requires us to remove discount promotions and also requires us to adhere to the recommended retail prices. This was communicated by email with the message that future orders will not be delivered if the above conditions are not met. The last order was delivered with a 1.5 week delay, but future orders will not be delivered at all. Several competitors also have discount promotions running at the moment, but according to the supplier this is allowed because this was discussed in advance. Suppliers are only allowed to impose maximum prices, right? Not adhering to recommended sales prices should never be a reason not to deliver? What are my rights in this matter? This is costing me turnover, especially in December. Thank you in advance.

Lawyer

The starting point is freedom of contract. Your supplier is in principle not obliged to do business with you, just as you are not obliged to do business with this supplier. If you do business with each other, the supplier may agree with you that you will adhere to recommended retail prices. If you do not want this, then do not enter into an agreement and look for another supplier. It is different if there are mandatory (long-term) purchase contracts with a supplier where they set different conditions for you than for your competitors. This damages your competitive position, there is no longer a 'level playing field'.

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