On 1 February 2016, Regulations governing certain contractual relationships in the grocery sector were signed into law by the Irish Minister for Jobs, Enterprise and Innovation. These Regulations apply to food and drink products and enter into force on 30 April 2016.
Amongst other provisions, the Regulations prescribe certain conditions relating to contractual relations, and limit practices such as retailers’ ability to seek ‘hello money’ (whereby suppliers are required to pay for stocking or listing of goods) and contributions to marketing expenses.
The Competition and Consumer Protection Commission has substantial powers to enforce compliance with the Regulations, including penalties of up to €100,000 or two years in prison.
Contributed by Claire Waterson