Sir, – Food and Farming Correspondent Alison Healy writes about the vasts sums of money allegedly demanded by large retail chains from suppliers in order to stock their products (Business, March 22nd).
The proposed code of practice for the grocery sector has often been cited as the solution to the problem of so-called “hello money”. We would like to point out that legislation already exists to tackle these types of practices.
The Competition (Amendment) Act 2006 was enacted to specifically address issues in the grocery sector. It prohibits a number of practices which include compelling or coercing payment or allowances for advertising or display of goods and “hello money” in relation to new or extended retail outlets or outlets under new ownership. The Competition Authority believes a code of conduct is unlikely to make much, if any, difference, as legislation already exists to prevent this activity. To date, no cases have been brought before the courts under this legislation.
It is the Competition Authority’s experience that suppliers are not willing to come forward and make complaints. The UK previously introduced a code of conduct which has had little effect, for the same reason – despite the existence of a code of conduct and legislation, suppliers are not willing to come forward for fear of being delisted. There are protections for such suppliers in the legislation and we would urge anyone who has been affected by these practices to come and talk to us. With evidence, we can take action. – Yours, etc,
CLODAGH COFFEY,
Communications Manager,
The Competition Authority,
Parnell Square,
Dublin 1.