Proposed Canadian grocery code lays out process to resolve disputes, impose sanctions

OTTAWA –

Efforts to craft a Canadian grocery code of conduct have reached a significant milestone with a proposed ultimate model that features a course of to resolve disputes and impose sanctions on systemic violators of the code.

However, language in a replica of the proposed code obtained by The Canadian Press seems to cease wanting imposing fines on firms that fail to stick to its rules.

Still, Michael Graydon, co-chair of the steering committee overseeing the code, says the voluntary code has a variety of potential deterrence measures to encourage compliance, equivalent to probably publicizing “consistent bad behaviour.”

Graydon, CEO of provider {industry} group Food, Health & Consumer Products of Canada, says the proposed code has tooth — although they will not be as sharp as some had hoped for.

He says the grocery code is basically about “good business practices,” eradicating irritants from the grocery provide chain and creating extra stability within the supplier-retailer relationship.

The {industry} committee engaged on the grocery code was established in response to contentious charges being charged to suppliers by giant grocery retailers.

Gary Sands, senior vice-president of public coverage for the Canadian Federation of Independent Grocers, says the code goals to deal with all {industry} members equally.

“There’s no distinction made as to whether you’re a small player or a big player,” he says. “Everyone’s treated equally.”

The industry-led grocery code of conduct was proposed as a strategy to handle long-standing points equivalent to arbitrary charges, price will increase imposed with out discover and late funds.

The code goals to supply retailers and suppliers a mechanism for the way charges and fines are levied within the grocery {industry}, amongst different guiding rules.

A session course of on the proposed code is open to meals {industry} members till May 30.

This report by The Canadian Press was first printed May 3, 2023.