FAS FINANLISED CASE AGAINST “KALUZHSKOE” ENT. OF RUSSIAN FEDERAL PENITENTIARY SERVICE

19-04-2019 | 11:29

A company subordinate to the Federal Penitentiary Service of Russia was selling suppliers’ goods for remuneration

 

On 15 April 2019, FAS Commission made decisions on two cases against “Kaluzhskoe” Federal State Unitary Enterprise – a company subordinate to the Federal Penitentiary Service of Russia. The Commission members arrived to a conclusion that the company violated the La on trade concluding “agency” contracts when selling food products for detainees in the facilities within the boundaries of Moscow.

 

Having analyzed the earlier obtained materials, FAS revealed signs of breaching Clause 5 Part 1 Article 13 of the Law on trade by “Kaluzhskoe”. For example, to organize and carry out trading operations, “Kaluzhskoe” entered into agency agreements with other economic entities – suppliers of food products, under which “Kaluzhskoe” was selling goods on a paid basis. At the same time, the company did not bear any risks related to possible deterioration of goods, for example, due to the expired shelf life. Therefore, the company subordinate to the Federal Penitentiary Service of Russia acted as an agent between food products suppliers and end customers.

 

The results of FAS decisions will be holding “Kaluzhskoe” administratively liable under Part 5 Article 14.40 of the Code of the Russian Federation on Administrative Violations.

 

Reference:

1. Under Clause 5 Part 1 Article 13 of No.381-FZ Federal Law “On the fundamental principles of trade operations in the Russian Federation” of 28.12.2009, economic entities involved in sale of food products by organizing retail chains, and economic entities that supply food products to retail chains, cannot enter into contracts between themselves for trading operations, under which goods are transferred for sale to third parties without assigning the property rights for the goods to the third party, including commission agreements, agency agreements, intermediary contracts or mixed contracts containing elements of one or all above contacts / agreements, except when contracts are concluded within the same group of persons, defined according to No. 135-FZ Federal Law “On Protection of Competition” of  26.07.2006, and (or) concluding the above contracts / agreements between economic entities that form a retail chain, or execute (fulfill) such contracts.

 

2. In accord with Part 5 Article 14.40 of the Code of the Russian Federation on Administrative Violations, concluding trade contracts between economic entities that sell food products via their retail chains and suppliers of food products to retail chains, under which goods are transferred to third parties for sale without assigning the property rights for the goods to such parties, including commission agreements, agency agreements, intermediary contracts or mixed contracts containing elements of one or all above contacts / agreements, except when contracts are concluded within the same group of persons, defined according to No. 135-FZ Federal Law “On Protection of Competition” of  26.07.2006, and (or) concluding the above contracts / agreements between economic entities that form a retail chain, or executing (fulfilling) such contracts are punishable by an administrative fine upon top-executives – from 10.000 RUB to 50,000 RUB; upon legal entities – from 1,500,000 RUB to 4,500,000 RUB.



Site Map

News & Events Press Releases Media Releases Image Library About the FAS Russia What We Do General Information Mission, Goals, Values Priority Setting Institutional Memory Stakeholders Engagement Center for Education and Methodics Our History Our Structure Powers of Head and Deputy Heads Our Ratings GCR Using our website International Cooperation Treaties & Agreements International Working Groups Working Group on Research of Competition Issues in the Market of International Telecommunications (Roaming) Meetings Working Group for Studying Competition Problems in the Pharmaceutical Sector Concept Note Meetings OECD Competition Committee OECD meetings 2013 OECD meetings 2014 OECD meetings 2015 OECD meetings 2016 OECD meetings 2017 OECD meetings 2018 FAS Annual Reports OECD-GVH RCC RCC Newsletter ICAP Council on Advertising Headquarters for Joint Investigations UNCTAD 13th session IGE UNCTAD Resolution Russian contributions 14th session IGE UNCTAD Resolution Russian contributions 15th session IGE UNCTAD 16th session IGE UNCTAD 17th session IGE UNCTAD EEU Model Law on Competition ICN BRICS WG (Markets of Social Importance) EU APEC Competition Policy and Law Group Annual meetings Projects ERRA Full Members Organizational Structure Archive Working Group on Investigating Issues on Pricing in the Oil and Oil Product Markets and Methods of their Functioning Meetings Document Library Legislation Reports & Analytics Cases & decisions Contacts Give feedback Contact us Links Authorities Worldwide