The Polish Office of Competition and Consumer Protection ("UOKiK") recently announced it has fined a producer of pet food for cats and dogs.

Empire Brands and two of its managers, the President of the Management Board and a former Board member, have been fined nearly half a million zlotys for allegedly forcing retailers to adhere to minimum resale prices when selling the company's products online.

According to UOKiK, this practice artificially maintained price levels in the market, preventing consumers from purchasing the products at more competitive prices.

Empire Brands required its contractors selling Empire branded pet food online to use retail prices no lower than those in the Empire online store. The company disciplined trading partners who sold at lower prices. Initially, they were reprimanded verbally, but continued non-compliance resulted in changes to the payment terms, with Empire’s management preventing retailers from buying products at promotional prices, and in extreme cases terminating cooperation.

Certain contractors complained to Empire that other contractors weren’t complying with the price arrangements, and asked Empire to intervene.

The fine imposed by UOKiK ends an administrative proceeding that began in 2023, during which UOKiK raided Empire Brands' premises.

This case highlights how important it is for pet food sector companies to have robust competition law practices in place. Businesses that sell their products through retailers or franchisees should review their competition law compliance policy. Similarly, businesses that sell products purchased from other manufacturers should instruct their staff that they cannot be required to follow recommended or fixed retail prices.

We are available to help address any concerns related to UOKiK’s ever-continuing interest in resale price maintenance practices.

If you need more information or further guidance in this area, please contact Marcin Alberski and Stanislaw Szymanek.

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