The grocery regulations signed into law this Monday state that contracts for the supply of food and drink must be in writing and cannot be varied or terminated except with express consent of both parties, the Department of Jobs, Enterprise and Innovation said in a statement.

Retailers or wholesalers must pay for those goods within 30 days and suppliers can require them to provide forecast of the goods that will be needed.

Marketing charges prohibited – except under contract

A major issue of concern among food producers and processors has been requirements by supermarkets to pay extra charges to have their products promoted, shown on dedicated shelves or listed at all.

The new regulations prohibit such practices in principle “except in strictly specified circumstances, based on free agreement between the parties, based on written contract, and based on an objectivement measurement of costs born by the retailer/wholesaler,” the Department said.

The regulations are to be enforced by the Competition and Consumer Protection Commission and non-compliance will be punishable by fines ranging from €6,000 to €100,000 and up to two years in prison.

Suppliers will also have an option to sue retailers and wholesalers for damages if they abuse their position in the food chain.

“There is potentially a real inequality between these players which can be abused in a manner that is not in the interests of jobs, consumers or sustainable safe food,” Minister Bruton said in the statement. “I am now signing an initial set of regulations into law which delivers on the Government’s commitment in the Programme for Government and will guard against abuse. These regulations will focus on food and drink, which have clearly been the products on which there has been most concern expressed.”

The Department has made the regulations and implementation guidelines available for download.

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