Consumer Protection Act 2007 (Grocery Goods Undertakings) Regulations 2016.

• Published date: 05 February 2016
• Statutory Instrument No.: 35/2016

ARRANGEMENT OF REGULATIONS

PART 1

PRELIMINARY MATTERS

1. Citation and commencement

2. Interpretation

PART 2

CONTRACTS BETWEEN SUPPLIERS AND RELEVANT GROCERY GOODS UNDERTAKINGS

3. Prescribed classes

4. Grocery goods contracts

5. Variation, termination or renewal of grocery goods contracts

6. Goods or services from third party

7. Non-performance due to factors beyond reasonable control of party to contract

8. Forecasts of supply of grocery goods

9. Payment from supplier as a condition of stocking, displaying or listing

10. Payment terms and conditions

11. Promotions

12. Payment for marketing costs

13. Payment for retention, increased allocation or better positioning of shelf space

14. Payment for advertising or display of grocery goods

15. Payment for wastage

16. Payment for shrinkage

PART 3

COMPLIANCE REQUIREMENTS FOR RELEVANT GROCERY GOODS UNDERTAKINGS

17. Designation and training of staff

18. Annual compliance report

19. Maintenance of records

PART 4

ENFORCEMENT

20. Penal provisions

S.I. No. 35 of 2016

CONSUMER PROTECTION ACT 2007 (GROCERY GOODS UNDERTAKINGS) REGULATIONS 2016

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 5th February, 2016.

I, RICHARD BRUTON, Minister for Jobs, Enterprise and Innovation, in exercise of the powers conferred on me by section 63B (inserted by section 83 of the Competition and Consumer Protection Act 2014 (No. 29 of 2014)) of the Consumer Protection Act 2007 (No. 19 of 2007) considering it appropriate to do so having regard to the matters specified in subsection (1) of the said section 63B and having consulted with the Competition and Consumer Protection Commission, hereby make the following regulations:

PART 1

PRELIMINARY MATTERS

Citation and commencement

1. (1) These Regulations may be cited as the Consumer Protection Act 2007 (Grocery Goods Undertakings) Regulations 2016.

(2) These Regulations shall come into operation on 30 April 2016 and, subject to paragraph (3), shall apply to grocery goods contracts entered into on or after that date.

(3) Where a grocery goods contract entered into before 30 April 2016 is renewed on or after that date, these Regulations shall apply to the contract on and after the date of its renewal.

Interpretation

2. (1) In these Regulations—

“annual compliance report” has the meaning assigned to it by Regulation 18;

“grocery goods contract” means a contract for the sale or supply of grocery goods by a supplier to a relevant grocery goods undertaking;

“invoice” means a written document, electronic transmission or equivalent request for payment provided by a supplier to a relevant grocery goods undertaking in respect of the sale or supply of grocery goods.

(2) For the purposes of these Regulations, the annual turnover of a relevant grocery goods undertaking on any particular date is the annual turnover figure of the relevant grocery goods undertaking concerned for the financial year preceding that date.

PART 2

CONTRACTS BETWEEN SUPPLIERS AND RELEVANT GROCERY GOODS UNDERTAKINGS

Prescribed classes

3. (1) Any food or drink that is intended to be sold for human consumption including—

(a) any substance or thing sold or represented for use as food or drink for human consumption,

(b) any substance or thing sold or represented for use as an additive, ingredient or processing aid in the preparation or production of food or drink for human consumption, and that is intended to be sold by a retailer as such an additive, ingredient or processing aid, and

(c) intoxicating liquors,

other than food or drink served or supplied on the premises of a grocery goods undertaking in the course of providing catering, restaurant or take-away services or any similar hospitality services, or intoxicating liquor served or supplied for consumption on the premises of a grocery goods undertaking, is prescribed as the class of grocery goods to which these Regulations apply.

(2) A grocery goods undertaking engaged in the retail or wholesale of grocery goods in the State that has, or is a member of a group of related undertakings that has, an annual worldwide turnover of more than €50 million, is prescribed as a relevant grocery goods undertaking to which these Regulations shall apply.

Grocery goods contracts

4. (1) A relevant grocery goods undertaking shall ensure that all of the terms and conditions of a grocery goods contract to which it is a party, are expressed in clear understandable language and recorded in writing.

(2) A copy of a contract referred to in paragraph (1) shall be signed and retained by the supplier and the relevant grocery goods undertaking.

Variation, termination or renewal of grocery goods contracts

5. (1) Subject to paragraph (2), a relevant grocery goods undertaking shall not vary, terminate or renew a grocery goods contract.

(2) Paragraph (1) shall not apply where—

(a) the contract makes express provision for such variation, termination or renewal or agreed circumstances in which such variation, termination or renewal may occur, and

(b) the contract specifies the period of written notice to be given prior to the variation, termination or renewal of the contract.

(3) The period of notice in relation to the variation, termination or renewal of the contract to be given by a relevant grocery goods undertaking in accordance with paragraph (2) shall be reasonable, having regard to all the circumstances of the contract, including:

(a) the duration of the contract;

(b) the frequency with which the relevant grocery goods undertaking places orders;

(c) the characteristics of the grocery goods, including their durability, seasonality and the external factors affecting their production;

(d) in the case of a significant variation to previously agreed arrangements in relation to the supply or delivery of grocery goods, the value of any order for grocery goods affected by the variation in supply or delivery arrangements requested by the relevant grocery goods undertaking relative to the annual turnover of the supplier concerned.

(4) For the purposes of this Regulation, “variation” includes variation in the frequency, timing or volume of the supply or delivery of grocery goods.

Goods or services from third party

6. (1) Subject to paragraph (2), a relevant grocery goods undertaking shall not require a supplier to obtain goods or services from a third party from whom the undertaking receives payment for the arrangement.

(2) Paragraph (1) shall not apply where-

(a) the supplier’s source for the goods or services fails to meet reasonable quality standards laid down for the goods or services by the relevant grocery goods undertaking, or

(b) the undertaking who provides the goods or services to the supplier charges more for the goods or services than is charged for the supply of an equivalent quality and quantity of goods or services by the third party proposed by the relevant grocery goods undertaking.

Non-performance due to factors beyond reasonable control of party to contract

7. (1) A party to a grocery goods contract shall not be liable for a delay or failure to perform the contract concerned resulting from circumstances beyond the reasonable control of the party concerned.

(2) A party affected by circumstances referred to in paragraph (1) shall notify, in accordance with the terms specified in the contract, the other party of—

(a) the specific circumstances which caused the delay or failure in the performance of the contract,

(b) the date and time in relation to which the circumstances causing the delay or failure in the performance arose, and

(c) where applicable, the date and time in relation to which the circumstances causing the delay or failure of the performance of the contract ceased.

(3) Where the circumstances referred to in paragraph (1) continue for a specified continuous period as provided for in the grocery goods contract, either party may terminate the grocery goods contract by written notice in accordance with the terms specified in the contract.

Forecasts of supply of grocery goods

8. (1) A relevant grocery goods undertaking shall, at the request of a supplier and following consultation with the supplier as to the basis of its preparation, prepare in good faith and with due skill, care and diligence, a forecast of grocery goods required by the relevant grocery goods undertaking in respect of a specified period.

(2) The relevant grocery goods undertaking shall forward the supplier a copy of the forecast prepared under paragraph (1) together with confirmation in writing of the basis on which it was prepared.

Payment from supplier as a condition of stocking, displaying or listing

9. (1) A relevant grocery goods undertaking shall not seek payment from a supplier as a condition of stocking, displaying or listing that supplier’s grocery goods unless such payment is based on an objective and reasonable estimate of the cost to the undertaking of stocking, displaying or listing those grocery goods, and—

(a) in the case of the supply of grocery goods from a supplier to an individual store of a relevant grocery goods undertaking, payment is sought from the supplier in respect of grocery goods which have not been stocked, displayed or listed in that store in the previous year, or

(b) in the case of the...