Round Table “Industry rules of professional ethics as a way to improve the functioning of markets”

Apr 04 2014 published c earnings

3 April 2014 , in the Chamber of Commerce of Ukraine held a round table discussion: "Industry Rules of Professional Ethics as a way to improve the functioning of markets".

The event was held under the chairmanship of the Committee businessmen agriculture of Commerce and Industry of Ukraine Oleg Yukhnovsky with President of the Chamber of Commerce Ukraine Gennady Chizhikova, in. Chairman of the Antimonopoly Committee Ukraine Mykola Barash, Chairman of the Public Council of the Antimonopoly Committee of Ukraine Alexander Zavada, President of the Association "Ukrkondprom" Alexander Baldynyuka, public authorities, members of the Public Council of the Antimonopoly Committee of Ukraine, and representatives of law firms, associations and major food and agricultural industry.

During the meeting, Mykola Barash informed about the practice of the Antimonopoly Committee of Ukraine to combat unfair competition. So, for 2013 Year Antimonopoly Committee of Ukraine has been discontinued 1259 violations of the Law of Ukraine "On Protection of Economic Competition". With respect them 403 disturbances in the form of unfair competition Committee decided to bring offenders to justice, a 856 actions, containing features such violations, was suspended in accordance with the recommendations given by the Committee of undertakings.

Today one of the most common types of fraud, committed to achieve unlawful advantage in competition, is the dissemination of information, deceptive. Violations of this type were 85 % the total number of violations in the form of unfair competition entities.

Distribution of information, deceptive, including advertising, directly affects consumer, his choice and results in a violator improper advantage in competition and unnecessary costs through consumer purchasing goods, which actually has those properties for which information is spread. Therefore bodies Committee 2013 році приділили особливу увагу виявленню та припиненню оманливої реклами на соціально важливих ринках.

A significant number of cases of dissemination of information, deceptive, Committee's bodies were found and stopped when promoting food and consumer goods, financial services, drugs.

Also, the Committee 2013 was given 61 conclusion in the form of recommended actions for clarification on compliance in the implementation of business entities in the dissemination of advertising or labeling their products with Article 15¹ of the Law of Ukraine "On Protection of Economic Competition".

Mykola Barash cited examples from foreign countries to combat unfair competition by their settlement at industry associations. As one of the steps for implementing a similar system in Ukraine agreed sectoral rules of professional ethics in the legal system for food Ukraine. Under these rules, Parties recognize unfair business scheme incompatible with ethics and morality in order to obtain improper benefits or benefits (preferences), misleading consumers, lobbying in government by material incentives, bribes, use of administrative resources and other illegal methods (Declination to boycott entity, Declination supplier to customer discrimination, bribing officials or employees of suppliers or customers) and undertake all beyond their legitimate ways to help prevent their occurrence in the business market confectionery, products and food concentrates of coffee.

Oleksandr Baldyniuk highlighted, entities that are interested in implementing all the requirements and regulations, and - in cooperation with the Antimonopoly Committee of Ukraine, to improve market efficiency, product competitiveness and improving consumer confidence and contractors.

In turn, Alexander Zavada stressed, that the introduction of fair practices in competition in the confectionery market requires entities to self-regulation and partnership.

In addition, participants at the meeting had broken a number of topical issues concerning the application of legislation on protection against unfair competition. They also discussed the problem of food advertising, in particular to create bank statements, prohibited for use in advertising, including such, containing false information about price, quality, specifics, limited quantity, etc.. This issue has also caused debate at the meeting of Public Council of the Antimonopoly Committee of Ukraine. In Europe, there has long list of prohibited expressions, which can not be used in advertising. According to Alexander Zavada, Implementation of this experience in Ukraine and formation of competitive public consciousness is a necessary step for the development of fair competition in the markets of Ukraine. Mykola Barash highlighted, that the resolution of this issue is possible in conditions of active dialogue and proposals businessmen.

Mykola Barash opined on the need for further active cooperation of the Antimonopoly Committee of Ukraine, authorities and entities towards the development of professional ethics in other areas to improve the competitive environment in Ukraine.

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