Unfair Trading Practices in the B2B Supply Chain (Green Paper)
The Commission wants to combat unfair trading practices by laying down requirements on the content of contracts between companies in the supply chain. Unfair trading practices result from unequal negotiating power and unequal levels of information on the part of the contracting parties.
Statutory interference in freedom of contract is only acceptable in the exceptional case where contractual conditions are imposed. The desire to combat unfair trading practices across the board, irrespective of whether there is market power, goes much too far because it restricts the freedom of contract for all companies. Differing levels of information available to the parties may, however, justify mandatory measures where one party intentionally withholds material information.