Competition and Consumer (Industry Codes—Food and Grocery) Regulations 2024
7Meaning of retribution
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7 Meaning of retribution
(1) A large grocery business engages in retribution if: (a) the large grocery business takes an action, or threatens to take an action, against a supplier that: (i) has exercised, or indicated that it will or may exercise, a right under the Code against the large grocery business; or (ii) is, or may be, able to exercise a right under the Code against the large grocery business; and (b) the action causes, or would cause, detriment to the supplier. (2) However, the action is not retribution if the action: (a) is not taken, or threatened to be taken, as punishment or retaliation for a matter mentioned in subparagraph (1)(a)(i) or (ii); and (b) is taken, or threatened to be taken, for genuine commercial reasons. (3) A large grocery business that wishes to rely on subsection (2) in relation to an action bears an evidential burden in relation to the matters in that subsection. (4) Without limiting subsection (1), an action mentioned in that subsection includes any of the following: (a) delisting a grocery product of the supplier; (b) requiring the supplier to make excessive contributions towards promotional or marketing costs for the supplier’s grocery product; (c) rejecting fresh produce from the supplier; (d) changing the location of the supplier’s grocery product in store or online to the detriment of the supplier; (e) delaying restocking the supplier’s grocery product in store or online; (f) varying, terminating, or electing not to renew an agreement with the supplier for the supply of an own brand product; (g) reducing the volume of stock ordered from the supplier; (h) cancelling an order from the supplier; (i) varying, terminating, or electing not to renew a grocery supply agreement with the supplier.