Policy Priorities / competitiveness internal market simplification
Unfair Trade Practices Directive
How the framework works today
The Unfair Trading Practices (“UTP”) Directive (EU) 2019/633 establishes rules to address unfair business to business practices in the supply chain. It sets out a list of prohibited practices and applies primarily to relationships between suppliers and buyers within the agri food sector.
The Directive was designed to improve fairness in commercial relationships by:
- protecting suppliers from certain unfair contractual practices,
- increasing transparency and predictability in supply chains, and
- contributing to the proper functioning of the Single Market.
While the current scope of the Directive is limited to the agri‑food supply chain, the European Commission is now evaluating how the framework operates in practice, including its effectiveness, scope and potential application to other sectors.
What is changing: evaluation and possible extension of the framework
The European Commission is currently conducting an evaluation of the UTP Directive, with a view to assessing whether the framework remains fit for purpose and whether revisions may be needed.
The evaluation focuses in particular on:
- the scope of the Directive,
- the turnover thresholds used to define supplier protection, and
- the list of prohibited practices.
In parallel, cross‑sector stakeholders are calling for possible adjustments, including the extension of the Directive to additional sectors, such as fast‑moving consumer goods (FMCGs), and changes to the definition of economic actors covered by the rules.
Any such developments would represent a significant evolution of the framework and could have implications for sectors beyond agriculture, including detergents and home care products.
Industry perspective and Detergents Europe’s work
For the cleaning and hygiene products industry, discussions on unfair trading practices are closely linked to broader considerations on supply‑chain balance, competitiveness and the functioning of the Single Market.
As a sector operating in fast‑moving consumer goods markets, the industry is part of complex supply chains involving manufacturers, distributors and retailers across the EU.
Changes to the UTP framework could therefore affect:
- contractual relationships between market actors,
- supply‑chain dynamics and commercial practices, and
- the overall balance between different participants in the value chain.
Detergents Europe is closely monitoring and engaging in the ongoing evaluation process. This includes:
- contributing to consultations and evidence‑gathering exercises,
- coordinating with cross‑sector partners and European associations, and
- ensuring that the perspective of the detergents and home care sector is reflected in discussions.
The objective of this engagement is to support a framework that:
- remains balanced and proportionate,
- is adapted to different market structures, and
- contributes to a well‑functioning and competitive Single Market.
