Watchdog to clamp down on 'hello money'
Published 02/02/2016 | 02:30
Supermarkets and other retailers will be banned from demanding payment from suppliers for promotions and shelf space under legislation that came into force yesterday. The Competition and Consumer Protection Commission took over as the "enforcer" of grocery legislation yesterday.
Among the rules it will be enforcing, retailers and wholesalers which have a turnover of more than €50m will not be able to demand so-called "hello money" from suppliers wishing to have their products featured prominently unless the terms are already included in the contract between the two sides.
Other regulation changes include contracts must be in writing while companies will be required to employ staff specifically to ensure the company is compliant in the new regulations.
In a statement, the consumer Protection Commission said businesses will now have three months to make sure they are compliant with the new rules.