For businesses operating in the trade and distribution sector, payment backlogs represent one of the key operational risks. The President of the Office of Competition and Consumer Protection (UOKiK) is systematically tightening supervision over the timeliness of B2B settlements. Ignoring warning signals from the authority may result in the initiation of formal administrative proceedings, which typically conclude with the imposition of substantial mandatory financial penalties.<\/p>\n\n\n\n
The President of UOKiK Is Acting More Actively and More Aggressively<\/p>\n\n\n\n
Since the beginning of 2026, the President of UOKiK has issued so-called \u201csoft interventions\u201d to 69 businesses under the Act of 8 March 2013 on Counteracting Excessive Delays in Commercial Transactions. These communications were directed at entities suspected of excessively delaying the fulfilment of monetary obligations.<\/p>\n\n\n\n
Such interventions serve a disciplinary and preventive function. They constitute an official signal from the authority regarding identified irregularities in the timely settlement of financial obligations, the continuation of which may result in the initiation of full administrative proceedings concerning excessive delays in payments.<\/p>\n\n\n\n
For eight of these businesses, the proceedings conducted by the President of UOKiK ended with administrative fines totaling PLN 2.6 million. The conduct of these entities caused payment backlogs affecting other businesses in an aggregate amount exceeding PLN 200 million. Among the sanctioned companies were entities from the pharmaceutical, cosmetics, automotive, and construction sectors.<\/p>\n\n\n\n
These actions constitute a direct response by the President of UOKiK to the growing and multifaceted problem of payment backlogs in commercial transactions. At the same time, they send a clear signal to entities failing to settle liabilities on time. Small and medium-sized enterprises, as well as subcontractors, have gained tangible systemic protection in this regard. Historically, payment delays experienced by these businesses generated a \u201cdomino effect,\u201d negatively impacting the financial liquidity of the entire domestic market.<\/p>\n\n\n\n
When Does a Penalty Apply?<\/p>\n\n\n\n
The Act expressly provides that \u201cexcessive delay in fulfilling monetary obligations by entities referred to in Article 2 of the Act, excluding public entities, is prohibited.\u201d Therefore, the mere finding of excessive payment delays gives the authority grounds to initiate proceedings against a business, together with all resulting consequences.<\/p>\n\n\n\n
An excessive delay exists where, during three consecutive months, the value of unpaid or late-paid monetary obligations amounts to at least 20% of the total value of monetary obligations due during that period.<\/p>\n\n\n\n
Until recently, it appeared that the President of UOKiK typically initiated actions under the Act of 8 March 2013 only after receiving a notification concerning suspected excessive payment delays. Today, however, UOKiK acts proactively. The authority uses databases maintained by the National Revenue Administration, payment-term reports, and IT systems. These tools effectively identify entities for soft interventions and detect cases requiring formal proceedings under the Act.<\/p>\n\n\n\n
The President of UOKiK does not always commence with formal proceedings. In many cases, a business will first receive the aforementioned \u201csoft intervention.\u201d This instrument was designed as a tool for dialogue between the authority and businesses, serving as a warning signal and an incentive to change practices voluntarily.<\/p>\n\n\n\n
Why Is It Unwise to Ignore the Authority?<\/p>\n\n\n\n
As in any administrative proceeding, the participation of the party involved is of considerable importance, and ignoring correspondence from the authority is among the worst possible strategies.<\/p>\n\n\n\n
If a business receives a specific request from the President of UOKiK, failure to respond, providing false information, or misleading the authority may result in an administrative fine of up to 5% of the business\u2019s turnover from the previous financial year, up to a maximum of EUR 50 million (currently equivalent to more than PLN 200 million).<\/p>\n\n\n\n
If the President of UOKiK initiates proceedings and determines that excessive payment delays have occurred, an administrative financial penalty will also be imposed. When calculating the amount of the penalty, the authority does not exercise broad discretion. Instead, it applies a strict statutory mathematical formula when determining the base penalty, which particularly affects businesses that \u201cfreeze\u201d invoice payments for months.<\/p>\n\n\n\n
The final amount of the penalty largely depends on the business\u2019s conduct because the authority may also reduce the fine based on specific statutory circumstances. This is why engaging in dialogue with the authority is so important.<\/p>\n\n\n\n
Businesses facing significant penalties may wish to consider a pragmatic assessment of their position. Instead of engaging in a legal dispute with the authority and challenging its findings, they may opt for voluntary acceptance of the penalty. In return, the business receives a 20% reduction in the fine. The condition is that the business waives its right to request reconsideration of the case by the President of UOKiK.<\/p>\n\n\n\n
The President of UOKiK may also reduce a penalty if the sanctioned entity demonstrates good faith, promptly ceases the infringement, and cooperates efficiently with inspectors. Rapid settlement of outstanding debts is equally important. If a business pays overdue invoices together with accrued interest within 60 days of learning about the initiation of proceedings, the authority will take this circumstance into account in its favor.<\/p>\n\n\n\n
Penalties for lack of cooperation with the authority\u2014whether after receiving a soft intervention or during formal proceedings\u2014are not the only concern.<\/p>\n\n\n\n
For businesses that view administrative fines as merely a cost of doing business, the Act contains a special provision. If a company receives a penalty for payment backlogs and, within the following two years, the President of UOKiK identifies the same practice again, the penalty is automatically increased by 50%, and the business permanently loses the right to the 20% reduction available through voluntary payment. At that point, there is no room for negotiation.<\/p>\n\n\n\n
How Can the Risk Be Reduced?<\/p>\n\n\n\n
The root cause of excessive payment delays among large businesses is often not a lack of funds but rather a complicated workflow\u2014inefficient invoice approval processes, a lack of alerts for overdue invoices, failure to negotiate revised payment terms, and disputes, both internal and with counterparties awaiting payment.<\/p>\n\n\n\n
The President of UOKiK conducts proceedings in the public interest. The objective is to change business culture in Poland and introduce principles of business ethics through legal enforcement. Payment terms agreed by businesses are no longer merely a marginal indicator of corporate social responsibility; they are increasingly becoming a significant element of financial risk management.<\/p>\n\n\n\n
To effectively minimize the risk of sanctions, the first step should be the implementation of compliance procedures, conducting an internal audit, and reviewing existing contracts. Equally important is the awareness that an inspection may begin at any time\u2014businesses should ensure they are properly prepared.<\/p>\n\n\n\n
Do you have questions or would you like assistance in reducing your risk exposure?<\/p>\n\n\n\n
Please feel free to contact Attorney-at-Law Anna Bobowska at:<\/p>\n\n\n\n