Draft Law on Trading Practices in Serbia: Key Implications for Retailers and Suppliers

The Government of the Republic of Serbia adopted the Draft Law on Trading Practices on 5 March 2026 and submitted it to the National Assembly.

This marks a significant regulatory development, as Serbia is introducing a comprehensive framework to regulate unfair trading practices for the first time. The Draft Law aims to strengthen transparency, protect suppliers, and address imbalances in bargaining power – particularly between large retailers and smaller producers.

 

Scope of Application

The Draft Law applies to commercial relationships between suppliers and retailers involving:

• agricultural and food products
• certain essential non-food goods, including agricultural inputs, household cleaning products, and cosmetics

 

Alignment with EU Law

The Draft Law is aligned with Directive (EU) 2019/633 on unfair trading practices, aiming to:

• improve transparency
• strengthen competition
• protect smaller suppliers
• stabilize supply chains

 

What Are Unfair Trading Practices?

Unfair trading practices arise when a stronger party imposes unfavorable terms due to a significant imbalance in bargaining power.

The Draft Law specifically targets practices such as:

• unilateral contract changes
• excessive rebates and hidden fees
• delayed payments
• retroactive charges
• transfer of business risks to suppliers

These practices have long placed suppliers – especially smaller ones – at a disadvantage.

 

Key Legal Changes

The Draft Law introduces several important mechanisms:

• clear definitions of unfair trading practices
• a blacklist (strictly prohibited practices)
• a grey list (conditionally permitted practices)
• stricter payment deadlines
• limits on rebates and margins

These changes aim to increase legal certainty and transparency across supply chains.

 

Blacklist: Strictly Prohibited Practices

The Draft Law prohibits, among others:

• short-notice cancellation of orders for perishable goods
• unilateral contract amendments
• transfer of risk to suppliers for losses occurring at retailer premises
• commercial retaliation (e.g., delisting products)
• misuse of confidential information

 

Grey List: Conditionally Allowed Practices

Certain practices are allowed only if agreed clearly and in advance in writing, including:

• return of unsold goods
• listing fees
• marketing and promotional services
• shelf positioning fees
• discounts related to store openings

Transparency is key – suppliers must receive clear cost estimates.

 

Payment Deadlines

The Draft Law introduces strict payment terms:

• 30 days for perishable goods
• 60 days for other goods

Payment periods will run from the date of delivery, improving supplier liquidity.

 

Rebates and Margin Limits

A significant novelty is the introduction of limits on rebates and margins, including the widely discussed 10% cap on total rebates, replacing previous temporary measures.

 

Enforcement and Whistleblowers

The Commission for Protection of Competition will oversee enforcement, with broad investigative powers.

The Draft Law also introduces whistleblower incentives, allowing individuals who report violations to receive a financial reward, strengthening enforcement in practice.

 

What Should Businesses Do Now?

If adopted, the Draft Law is expected to enter into force in the first half of 2026, with a four-month transition period.

Businesses should begin:

• reviewing supply and distribution agreements
• reassessing rebate and pricing structures
• updating internal compliance policies

The Draft Law on Trading Practices represents a major step toward a more balanced and transparent market in Serbia. By addressing unfair practices and aligning with EU standards, it introduces a more predictable framework for both retailers and suppliers.

Majstorović & Partners will continue to monitor developments and remains available to assist clients in navigating the upcoming regulatory changes.

 

This publication is provided for general information purposes only and does not constitute legal advice or a legal opinion with respect to any specific matter. Legal advice should be obtained based on the circumstances of each case.