E-commerce company fined for late payments to suppliers

The Swedish Competition Authority launched an investigation into whether the contractual terms between Hellofresh Sweden AB and its suppliers were in breach of the Swedish Act on the Prohibition of unfair trading practices in the purchase of agricultural and food products (LOH). The authority found that the company, which sells meal kits and recipes online, had paid its suppliers later than permitted by law.

“Our investigation shows that Hellofresh, both in contract terms and in actual payments, has repeatedly paid its suppliers later than allowed. The prohibition against paying suppliers later than 30 days exists to safeguard the liquidity of primary producers and food producers, and to prevent them from effectively acting as a bank for the buyer. Not being paid on time impairs their ability to respond to unexpected events and rising costs,” says Martin Bäckström, Head of Unfair Trading Practices Unit.

In its decision, the Swedish Competition Authority rules that Hellofresh must pay an administrative fine of SEK 9 million. The amount has been calculated based on a combination of the nature, duration, and scope of the infringement.

The authority's investigation shows that Hellofresh, on hundreds of occasions, paid its suppliers later than 30 days. The fact that these late payments occurred repeatedly and over a long period makes the infringement a serious one.

The purpose of the LOH is to prevent the use of unfair trading practices in the agricultural and food supply chain. One such prohibited practice is for buyers to pay their suppliers later than 30 days.

Martin Bäckström, Head of Unit, +46 76-542 15 58, martin.backstrom@kkv.se
Marie Strömberg Lindvall, Press Officer, +46 76-542 15 92, marie.stromberglindvall@kkv.se

Read the decision (in Swedish), dnr 478/2024