New Grocery Regulations For Ireland
The Competition and Consumer Protection Commission has begun its role as enforcer of the new Grocery Regulations, following the publication of the Consumer Protection Act 2007 (Grocery Goods Undertakings) Regulations 2016. The regulations apply to retailers and wholesalers of food and drink in Ireland who have a worldwide turnover in excess of €50 million. Grocery businesses are now obliged to assess whether the regulations apply to them.
One of the key requirements of the Grocery Regulations is that all new or renewed contracts between retailers or wholesalers and suppliers will have to be put in writing. These regulations come into effect from 30 April 2016.
Isolde Goggin, Chairperson of the Commission, comments: “Our mission is to 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. 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.”
A period of three months has been allowed to enable businesses to familiarise themselves with the requirements placed on them. During this time the Commission will engage with retailers and wholesalers to advise them of their obligations and to provide guidance to them in making the necessary changes, to ensure their compliance with the regulations. The Commission’s website provides guidance for retailers, wholesalers and suppliers and will be updated on an ongoing basis. {http://www.ccpc.ie/compliance-business/grocery-sector-regulations}
Isolde Goggin concludes: “We have a significant engagement programme planned, which will provide affected grocery businesses with the necessary knowledge they need to put in place the required compliance structures. The new Grocery Regulations are an important addition to the enforcement tools we have at our disposal and we are committed to using all of our powers to create a culture of compliance in the grocery sector to benefit consumers and businesses.”
