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:
- good faith, transparency, openness and fairness in grocery goods dealings
- records to be retained for inspection, and regular compliance statements to be made
- restrictions on unilateral changes to grocery goods contracts
- restrictions on payment for shelf space, marketing costs, advertising costs, wastage and shrinkage.
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.
Source: irishtimes.com
