Agricultural and Food Supply Chain Act 2023

Agri-Food Unfair Trading Regulations: prohibited payments

58. (1) Agri-Food Unfair Trading Regulations may prohibit a late payment for agricultural and food products (whether or not perishable).

(2) Agri-Food Unfair Trading Regulations may prohibit a payment that is not related to the sale of the agricultural and food products.

(3) Agri-Food Unfair Trading Regulations may prohibit a payment for deterioration or loss of products occurring on the buyer’s premises or after ownership has been transferred to the buyer, unless the deterioration or loss is caused by the negligence or other fault of the supplier.

(4) Agri-Food Unfair Trading Regulations may prohibit a charge for stocking, displaying or listing products, or for making products available on the market.

(5) Agri-Food Unfair Trading Regulations may prohibit a requirement for the supplier to bear all or part of the cost of any discounts on agricultural and food products that are sold by the buyer as part of a promotion unless the buyer, prior to a promotion that is initiated by the buyer, specifies the period of the promotion and the expected quantity of the agricultural and food products to be ordered at the discounted price.

(6) Agri-Food Unfair Trading Regulations may prohibit a charge for advertising or marketing by the buyer.

(7) Agri-Food Unfair Trading Regulations may prohibit a charge on the supplier for fitting-out premises used for the sale by the buyer of the supplier’s products.

(8) Agri-Food Unfair Trading Regulations may prohibit payment of compensation for the cost of examining customer complaints relating to the sale of the supplier’s products, in the absence of negligence or fault on the part of the supplier.

(9) Agri-Food Unfair Trading Regulations may limit the circumstances in which a buyer may seek payment from a supplier in respect of marketing costs.

(10) Agri-Food Unfair Trading Regulations may prohibit a buyer from directly or indirectly compelling a supplier to make a payment—

(a) in respect of a promotion of products of a supplier in the premises of the buyer,

(b) for the advertising or display of products of the supplier in the premises of the buyer, or

(c) to retain shelf space, or to secure better positioning on shelves, or an increase in the allocation of shelf space, for the products of that supplier.

(11) Agri-Food Unfair Trading Regulations may specify the circumstances in which a buyer may, or may not, seek payment from a supplier for the purchase of products for resale by the buyer from the supplier.

(12) Agri-Food Unfair Trading Regulations may specify the circumstances in which a buyer who is a retailer or wholesaler may, or may not, seek payment from a supplier to—

(a) retain shelf space for the products of the supplier,

(b) secure better positioning on shelves for those products, or

(c) secure an increase in the allocation of shelf space.

(13) Agri-Food Unfair Trading Regulations may specify that, where a payment is required by a buyer for the situations referred to in subsection (4), (5), (6) or (7), if requested by the supplier, the buyer shall provide the supplier with an estimate in writing of the payments per unit or the overall payments, whichever is appropriate, and, insofar as the situations referred to in subsection (4), (6) or (7) are concerned, shall also provide, in writing, an estimate of the cost to the supplier and the basis for that estimate.

(14) Agri-Food Unfair Trading Regulations may provide that, where a prohibition specified in a provision of this Act that is referred to in subsection (15) and is provided for in Agri-Food Unfair Trading Regulations conflicts with a provision in another Act or instrument made under such Act, or an act of an institution of the European Union, which falls within the scope of the prohibition, the prohibition under the Agri-Food Unfair Trading Regulations that relates to a provision referred to in subsection (15) shall, in accordance with Article 3(4) of the Directive, prevail over such other provision.

(15) The provisions referred to are the following:

(a) Section 58(1);

(b) Section 58(2);

(c) Section 58(3);

(d) Section 58(4);

(e) Section 58(5);

(f) Section 58(6);

(g) Section 58(7);

(h) Section 58(8);

(i) Section 59 (1);

(j) Section 59 (3);

(k) Section 60 (1);

(l) Section 61 (2);

(m) Section 62 (1);

(n) Section 62 (2).

(16) In this section—

(a) a reference to prohibiting a payment is a reference to prohibiting the inclusion in an agreement of provision requiring (in whatever terms) a payment of the specified kind to be made, and

(b) a reference to a payment includes a reference to granting a credit or allowance or providing value in any other form.