FDII: Regulations Will Create A ‘Fair Trading Environment’
Published on Feb 2 2016 6:44 AM
Ibec group Food & Drink Industry Ireland has welcomed the signing into law of new grocery regulations by Enterprise Minister Richard Bruton, saying the regulations “present a unique opportunity to create a fair trading environment in the Irish grocery sector.”
FDII director Paul Kelly believes that “unfair practices” such as “ a failure to respect contractual terms, de-listing threats and unilateral deductions off-invoice without sound business reasons” will be addressed by the regulations, which will address 'the major imbalance in the relationship between major grocery retailers and suppliers’.
"Consumers are best served by a grocery market that is both fair and competitive, one that offers choice and convenience, and provides an outlet for new products and suppliers,” said Kelly.
“Ireland has been slow to act, but the new rules will help to address some of the unfair pressures currently put on suppliers by major retailers.”
Elsewhere, the Competition and Consumer Protection Commission, which has been installed as the enforcer of the regulations, said that the new rules will ‘make markets work better for businesses and consumers alike’.
“The Commission will use its powers to ensure compliance with the legislation, which brings predictability and certainty into the relationships between suppliers and grocery businesses in Ireland,” commented Isolde Goggin, Chairperson of the Commission.
“This will be achieved through the requirement to have written contracts and the prohibiting of certain supplier payments unless they are provided for in a contract. The regulations also require suppliers to be paid within 30 days unless otherwise agreed during contract negotiations. Retailers and wholesalers will be obliged to demonstrate their compliance with the regulations in an annual compliance report to the Commission and to maintain records of their dealings with suppliers.”
© 2016 - Checkout Magazine by Stephen Wynne-Jones