The New Zealand government has unveiled a "Grocery Code of Conduct" aimed at promoting fairness in dealings between supermarkets and their suppliers.
The New Zealand government has unveiled a “Grocery Code of Conduct” aimed at promoting fairness in dealings between supermarkets and their suppliers. The Grocery Commission will oversee the implementation of the new rules to ensure that supermarkets treat local suppliers fairly and do not take advantage of their dominance. The code will require companies to use clear language in supply contracts, make timely payments to suppliers, and engage in transactions “in good faith.” Penalties for violations could include fines of up to 3% of turnover or $3 million for companies and up to $200,000 for individuals. The code is set to take effect on September 28 and will initially apply to major supermarket chains Woolworths and Foodstuffs. The move aims to create a more equitable environment for consumers and suppliers, fostering competition and potentially reducing prices.