Competition and Consumer (Industry Codes—Food and Grocery) Regulations 2024
33Funded promotions
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33 Funded promotions
(1) If a supplier agrees, or is required, to make a payment to a large grocery business in support of the promotion of a product (the funded promotion), the large grocery business must not hold the funded promotion unless the supplier has been given reasonable written notice.
Note: A large grocery business must not require a supplier to fund all or part of the costs of a promotion unless certain conditions are met: see section 28.
Civil penalty:
(a) for a contravention by a body corporate—3,200 penalty units; or
(b) for a contravention by a person who is not a body corporate—640 penalty units.
(2) If the large grocery business orders a grocery product from a supplier in connection with the funded promotion at a promotional price (whether calculated by way of discount, rebate, credit, allowance or otherwise), the large grocery business must: (a) ensure that the basis on which the quantity of the order is calculated is transparent; and (b) not over‑order; and (c) if the large grocery business sells any over‑ordered product above the promotional resale price—pay the supplier the difference between the supplier’s promotional price and the supplier’s full price for the product.
Civil penalty:
(a) for a contravention by a body corporate—3,200 penalty units; or
(b) for a contravention by a person who is not a body corporate—640 penalty units.
(3) If the large grocery business has placed an order for a grocery product with the supplier in connection with the funded promotion, the large grocery business must not do either of the following without the supplier’s written consent: (a) cancel the order; (b) reduce the volume of the order by more than: (i) if the large grocery business is a retailer—10%; or (ii) if the large grocery business is a wholesaler—20%.
Civil penalty:
(a) for a contravention by a body corporate—3,200 penalty units; or
(b) for a contravention by a person who is not a body corporate—640 penalty units.
(4) Subsection (3) does not apply if: (a) the large grocery business gives the supplier reasonable written notice of the cancellation or reduction; or (b) the large grocery business compensates the supplier for any net resulting costs, losses or expenses incurred or suffered by the supplier as a direct result of the large grocery business failing to give reasonable notice of the cancellation or reduction.