Read the latest email from the Commerce Commission’s Grocery team on the Grocery Code grace period ending
View this email in your browser
Tēnā koe
Today, 28 March 2024, the grace period for the Grocery Supply Code comes to an end. This means that regulated grocery retailers (“RGRs”), including Woolworths New Zealand, Foodstuffs North Island and Foodstuffs South Island, must have offered suppliers variations to ensure existing grocery supply agreements are consistent with the Code by today. Under the Code, all grocery agreements must now be in writing.
As a supplier, there is no requirement for you to have signed a new agreement by today. Suppliers are also not required to agree to contract out of any protections that apply unless they consider it in their interest. Take your time to consider agreements, do not opt-out of provisions of the Code unless it is of benefit to you, and consider seeking independent legal advice. We have highlighted these provisions in our recently-launched checklist for grocery suppliers to provide you with support when assessing grocery supply agreements, and show which areas are able to be negotiated.
We would also like to remind you that the Code covers not only what should be included in a grocery supply agreement, but how that RGR continues to deal with you on an ongoing basis. The grocery supply code factsheet summarises behaviours required of the RGR, conduct that is prohibited, and conduct that can only occur if it is provided for in your grocery supply agreement and is reasonable in the circumstances. This could include when retailers ask you for certain payments which you may not agree to.
As the regulator, we will continue to monitor the RGRs and their compliance with the Code. We encourage suppliers to come forward to the Commerce Commission if you have concerns with the conduct of RGRs. Information we receive from suppliers and the sector supports the Commission to assess the effectiveness of the grocery sector.
You can contact us directly at grocery.regulation@comcom.govt.nz. If you are concerned about revealing your identify, our Anonymous Reporting Tool provides a secure channel for people to remain anonymous when coming forward to the Commission about concerning or inappropriate behaviour. Find out more about our anonymous reporting tool on our website https://comcom.govt.nz/make-a-complaint.
Ngā mihi
The Grocery Team
