Locations
Further to our blog dated 10 March 2016, the new regulations governing certain practices in the commercial relationships between suppliers, wholesalers and retailers of food and drink commenced on 30 April 2016 (“Regulations”).
Who and what do the Regulations apply to?
The Regulations apply to:-
- All retailers and wholesalers (described as “relevant grocery goods undertakings” in the Regulations) that have, or are part of a group of related undertakings, that has an annual worldwide turnover exceeding €50 million; and
- All contracts for the sale or supply of grocery goods by a supplier to a relevant grocery goods undertaking entered into or renewed after 30 April 2016.
Key Provisions
The Regulations include the following key provisions:-
- The undertakings must as soon as practicable but no later than 29 July 2016 designate members of staff to be responsible for compliance with the Regulations and who will liaise with the Competition and Consumer Protection Commission (the “Commission”).
- All terms and conditions of “grocery goods contracts” must be expressed in clear understandable language and recorded in writing.
- Grocery goods contracts must be signed and retained by the supplier and the relevant wholesaler/retailer.
- The Regulations limit certain practices, such as suppliers being required to pay for stocking/listing of goods, for promotion and marketing, and impose obligations on retailers and wholesalers to maintain certain records.
Enforcement
The “Commission is responsible for enforcing compliance with the Regulations, and has initiated a programme of engagement with the main players in the grocery sector.
The Regulations are available here.
Author: Deirdre Duffy