Draft regulations for grocery sector published

Draft regulations aimed at legally controlling the balance between suppliers, retailers and others in the grocery sector have been published by Minister for Enterprise Richard Bruton.

The new regulations follow complaints from suppliers, particularly in the agricultural sector but including manufacturers, that their interests are oppressed as a result of price wars among retailers.

Consultation and submissions are being sought from interested parties before February 27th, after which Mr Bruton may make an order under the Competition and Consumer Protection Act.

Safe food

The draft regulations are aimed at rebalancing relationships between the different players in the grocery sector, and ensuring that dealings in the sector are fair and sustainable and operate in the interests of jobs, consumers and sustainable safe food.

Among the areas covered by the draft regulations are a requirement for grocery goods contracts to be made in writing. Also included are requirements:

for good faith, transparency, openness and fairness in

grocery goods dealings

for records to be retained for inspection, and regular compliance statements to be made

for restrictions on unilateral changes to grocery goods contracts

for restrictions on payment for shelf space, marketing costs, advertising costs, wastage and shrinkage.

Mr Bruton said he looked forward to hearing feedback “from all stakeholders”

before making decisions on the final regulations for implementation next year.

He said relationships would continue to be based on commerce, and prices would continue to be set by hard negotiations. But, in future, certain terms must be included in contracts, records must be retained for inspection and a compliance statement must be made. “These measures, together with strong enforcement powers, will ensure that these relationships are fair and sustainable,” he added.