The Commerce Commission has launched a review to see if the new Grocery Supply Code is effectively addressing the power imbalance between major supermarkets and suppliers.

The code, which came into effect in September last year, includes a set of rules supermarkets need to follow when dealing with suppliers to ensure transparency and certainty in their agreements.

This was to solve the ongoing power imbalance and lack of trust between suppliers and grocery retailers as it would ultimately affect a well-functioning and competitive grocery market, said grocery commissioner Pierre van Heerden.

ComCom is calling for opinions from suppliers, retailers, and any other industry players to make sure the code is operating as intended.

“Through this review, we’ll consider the effectiveness of the Code if there are any areas for improvement, and if the Code needs to be amended, revoked, or replaced,” added van Heerden.

ComCom’s market study into the grocery sector completed in early 2022 found that many suppliers are reliant on their trade with the main retailers and that grocery retailers were able to transfer costs, risks and uncertainty onto suppliers.

The consultation process will run until September 16, and submissions can be made via the commission’s website.