The National Assembly of the Republic of Serbia adopted the new Law on Trading Practices for Certain Types of Products on 23 April 2026, introducing a comprehensive regulatory framework governing commercial relationships between retailers, distributors and suppliers in Serbia.

The Law represents another important step in Serbia’s harmonisation with EU market and competition standards and is largely inspired by Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships within the agricultural and food supply chain.

At the same time, the Serbian legislator opted for a broader regulatory approach than the minimum standards prescribed under EU law, significantly expanding the scope of regulated products and affected businesses.

Broader Scope Than the EU Directive

Unlike Directive (EU) 2019/633, which primarily focuses on agricultural and food products, the Serbian Law also applies to a wider range of consumer goods and products considered important for market supply and consumer protection.

In addition to food and agricultural products, the Law covers categories such as:

• cosmetics,
• hygiene products,
• household chemicals,
• baby products,
• cleaning products, and
• other consumer goods distributed through large retail chains.

As a result, the new framework will affect not only companies operating in the food sector, but also FMCG businesses, importers, distributors, wholesalers and international suppliers active in the Serbian retail market.

New Rules for Supply Chain Relationships

The Law introduces stricter regulation of contractual relationships between buyers and suppliers and seeks to address imbalances in bargaining power within supply chains.

Among other things, the Law prohibits a number of unfair trading practices, including:

• unfair payment deadlines,
• unilateral amendments of contractual conditions,
• unjustified return of unsold goods,
• retroactive changes of commercial terms,
• disproportionate marketing and promotional fees,
• unfair rebate structures, and
• certain forms of risk transfer from retailers to suppliers.

The new framework distinguishes between practices that are absolutely prohibited and practices that may only be permitted if clearly agreed in advance between the parties in writing.

Mandatory Written Agreements and Increased Transparency

One of the key practical changes introduced by the Law is the increased emphasis on written contractual documentation and transparency of commercial conditions.

Businesses will need to ensure that supply agreements clearly regulate:

• pricing structures,
• rebates and bonuses,
• promotional activities,
• logistics obligations,
• payment deadlines,
• return procedures, and
• allocation of commercial risks.

The Law is expected to significantly impact existing supply agreements, rebate models, procurement procedures and general terms and conditions currently used by retailers and distributors in Serbia.

Regulatory Oversight and Enforcement

The Commission for Protection of Competition will play a central role in supervising the implementation of the new Law and conducting enforcement proceedings.

The authorities are granted broad investigative powers, while non-compliance may result in significant financial penalties and reputational risks for businesses.

Given the expected regulatory scrutiny, companies operating in Serbia should proactively assess whether their current contractual models and procurement practices comply with the new framework.

Entry Into Force and Transition Period

The Law enters into force on the eighth day following its publication in the Official Gazette of the Republic of Serbia i.e. on 1 May 2026.

Businesses will generally have four months to harmonise existing agreements, internal policies and commercial practices with the new rules, while certain provisions relating to mandatory written agreements and additional reporting obligations will apply from 1 January 2027.

What Businesses Should Do Now

Companies operating in Serbia should already begin:

• reviewing supply chain agreements,
• assessing rebate and marketing fee models,
• revising procurement procedures,
• analysing payment practices,
• updating general terms and conditions, and
• identifying potential competition law and compliance risks.

The new Law will likely require substantial contractual and operational adjustments, particularly for retail chains, FMCG companies, distributors and international suppliers active in the Serbian market.

For additional information regarding the new Serbian Law on Trading Practices and related compliance requirements, PSG Legal is available to assist domestic and international businesses regarding commercial contracts, retail regulation, competition law and supply chain compliance matters.