The President of Poland’s Office of Competition and Consumer Protection, UOKiK, has imposed more than PLN 2.3 million in fines on Avon and Neptun for failing to pay their business partners on time.
According to the authority, payment delays are particularly damaging for micro, small and medium-sized enterprises, for which the lack of timely payment can create serious problems in day-to-day operations.
Avon fined over PLN 1.1 million
In Avon’s case, UOKiK’s proceedings covered the period from April to June 2023. The authority found that the company had overdue payments to 233 businesses.
During the period under review, 2,189 invoices were paid late, with the longest delay reaching 129 days. A further 551 invoices remained unpaid.
For the payment backlogs identified, the President of UOKiK imposed a fine of PLN 1,145,604.54 on Avon.
Neptun also penalised
The second company fined for late payments was Lublin-based Neptun. The business operates, among other areas, in the distribution of products used in infrastructure construction, including water supply, sewage and gas network projects.
UOKiK also found delays in payments to smaller business partners in Neptun’s case during the same period. The company was fined PLN 1,174,634.
“Late payment by large companies to smaller contractors is unacceptable. For the SME sector, timely payment is often a condition of survival. There is no doubt that penalties for delays should be severe. Unfortunately, we are currently limited by the statutory formula that determines the maximum financial penalty for creating payment backlogs,” said Tomasz Chróstny, President of UOKiK.
Penalties are based on a statutory formula
Sanctions for creating payment backlogs are calculated according to rules set out in Polish law. The key factors are the value of overdue receivables and the length of payment delays.
The calculated fine may be reduced in certain circumstances, including when a company takes steps to limit the risk of further delays, reduces the scale of overdue payments, ends the infringement or actively cooperates with UOKiK during the proceedings.
However, the current regulations also limit the scope of investigations. The President of UOKiK may examine a company’s payment discipline over a three-month period. Intervention is possible when the total value of overdue payments during that time reaches at least PLN 2 million.
More than 100 notices sent to companies
UOKiK does not rely solely on financial penalties. Since the beginning of 2026, the President of the authority has sent more than 100 formal notices to businesses regarding identified irregularities in payment timeliness.
In these letters, the office calls on companies to improve their settlement practices and pay their business partners more quickly. According to UOKiK, most companies receiving such notices take action and settle their overdue liabilities.
Businesses that fail to improve their payment practices may face formal proceedings and financial penalties.
“The fundamental goal of combating payment backlogs is to ensure that smaller businesses receive the money they are owed as quickly as possible. Formal notices play a very important role here. Most companies to which we send letters settle their outstanding payments. The others must take into account the possibility of a financial penalty,” Chróstny said.
UOKiK calls for invoice rule changes
Proceedings concerning payment backlogs are launched on the basis of data provided by the Head of the National Revenue Administration. Analysing individual cases requires reviewing a large number of documents, including thousands of invoices.
UOKiK argues that proceedings could be accelerated by introducing an obligation to state the payment due date directly on every invoice.
At present, when this information is missing, officials must conduct additional reviews of contracts, annexes, orders, agreements and other documents confirming the agreed settlement terms.
According to the authority, such a change could make it easier to identify payment delays and strengthen protection for businesses, especially the smallest ones, against the consequences of waiting too long for money they are owed.
