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Code would keep supermarkets honest

Green MP Sue Kedgley has drafted a member's bill to set up a supermarket code of practice and a supermarket ombudsman to ensure consumers are treated fairly.The code would set out an open and transparent set of rules around the supply chain practices of s

NZPA and NBR staff
Wed, 08 Dec 2010

Green MP Sue Kedgley has drafted a member's bill to set up a supermarket code of practice and a supermarket ombudsman to ensure consumers are treated fairly.

The code would set out an open and transparent set of rules around the supply chain practices of supermarkets, and protect suppliers against unfair or anti-competitive trading practices, she said.

"At the moment, with just two supermarket chains in New Zealand, the buying power of supermarkets is so extensive they can dictate to, or even bully, suppliers. They can also play suppliers off against each other, passing excessive and unfair costs on to them," she said.

"I have been informed that supermarkets will sometimes threaten suppliers with the loss of business if they supply a competitor, and use other unfair trading practices."

Transparent rules would ensure suppliers and consumers were fairly treated.

"At present the situation in New Zealand is such that many suppliers are close to going out of business.

"And if the viability of the growers and suppliers of supermarket produce is threatened this will be bad, both for jobs and the economy as well as consumers."

She said there was a similar code in the United Kingdom and an adjudicator was being appointed to enforce it.

NZPA and NBR staff
Wed, 08 Dec 2010
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Code would keep supermarkets honest
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