Foodstuffs North Island has received a warning from the Commerce Commission over “uncooperative and unreasonable” treatment of a supplier.

The ComCom believes the co-op has obstructed and delayed a supplier’s request, which may have breached the Grocery Industry Competition Act 2023.

“We believe that Foodstuffs North Island likely breached a fundamental aspect of the Supply Code which is that retailers deal with suppliers in good faith at all times,” Grocery Commissioner Pierre van Heerden says.

“I’m concerned that this follows a pattern of behaviour that has been present in the industry for decades.

“This behaviour has been enabled for so long due to the significant power imbalance between the major supermarkets, who hold the vast majority of the market, and suppliers, who have limited bargaining power in comparison,” he added.

Additionally, the category manager at Foodstuffs North Island, who served as the primary point of contact for the supplier, was also investigated regarding their role in this matter.

The ComCom stated that the warning was based on the evidence currently available and that further actions might be taken if more examples come to light.

Only a court can determine if there has been a breach of the Act. The maximum penalty for breaches of the Supply Code for an individual is $200,000, or in any other case, the greater of $3 million and the value of any commercial gain.

Last month, the Commerce Commission proposed limiting the payments that supermarkets can charge suppliers as part of the changes to the draft Grocery Supply Code.