Here’s what a proposed grocer code of conduct could and couldn’t do
Global News
Canada appears to be close to instituting its own grocery code of conduct, though the potential penalties for violating the voluntary set of rules have left some disappointed.
Efforts to craft a Canadian grocery code of conduct have reached a major milestone with a proposed final version that includes a process to resolve disputes and impose sanctions on systemic violators of the code.
However, the language in a copy of the proposed code obtained by The Canadian Press appears to stop short of imposing fines on companies that fail to adhere to its principles.
Still, Michael Graydon, co-chair of the steering committee overseeing the industry-developed code, said the voluntary code has a number of potential deterrence measures to encourage compliance, such as potentially publicizing “consistent bad behaviour.”
“It has teeth. Are they as sharp as some may like? Maybe not,” said Graydon, also the CEO of supplier industry group Food, Health & Consumer Products of Canada.
“But if we get alignment and co-operation, we may not need to have to resort to fines anyways.”
The grocery code is about creating more balance in industry’s supplier-retailer relationships, Graydon said.
“This is not rocket science,” he said. “This is just good business practice.”
The industry committee working on the grocery code was established in response to contentious fees being charged to suppliers by large grocery retailers, which have significant bargaining power due to their scale.
