The European Commission (EC) is adopting a European Retail Action Plan which looks to tackle unfair business to business trading practices in the automotive retail sector.
It means businesses can get in touch with the EC before April 30 to communicate unfair trading practices in the automotive retail sector.
The NFDA has welcomed the move as its believes dealers need more protection as the industry moves away from sector specific block exemption regulations in June.
Sue Robinson, head of the NFDA, said: “NFDA has long campaigned for a fair market.
“At the heart of the NFDA's call is the need for a transparent supply chain, predictable contractual terms that recognise the substantial investments dealers make and proportionate freedoms for dealers to manage their own businesses without excessive interference.
“Following a number of positive meetings with the EC last year, as well as reports identifying the significant unfair trading practices experienced by dealers, the NFDA sees this as a key step towards improving the market for dealers and consumers and looks forward to further consultation with the relevant departments in Brussels.”
Michel Barnier, commissioner for internal market and services, said: “Retailers play an important role in bringing the Single Market to EU consumers.
“However barriers to the creation of an efficient and competitive single market in retail remain.
“This Action Plan sets out a strategy to improve the competitiveness of the retail sector and to enhance the sector’s economic, environmental and social performance.
"We also want fair play. Unfair trading practices jeopardise the viability of businesses and make the retail supply chain inefficient. Consumers should have competitive prices but I also want suppliers to retail to receive fair prices for their products.”
The EC will set up a permanent group on retail competitiveness that will help develop further specific objectives for the areas identified, monitor progress achieved and advise on additional new actions that could be proposed.