S.I. No. 332/1956:

RESTRICTIVE TRADE PRACTICES (GROCERIES) ORDER, 1956.

RESTRICTIVE TRADE PRACTICES (GROCERIES) ORDER, 1956.

ARRANGEMENT OF ARTICLES.

Article.

1. Short title.

2. Definitions.

3. Prohibition of resale price maintenance by individual supplier or wholesaler.

4. Prohibition of collective resale price maintenance.

5. Prohibition of collective fixing of suppliers' and wholesalers' selling prices.

6. Recommended price not binding as minimum price.

7. Prohibition on withholding of goods because of prices charged.

8. Withholding of goods by supplier because retailer resells at or below wholesale price.

9. Withholding of goods from retailer for advertising supplier's and own price.

10. Power to supplier to request wholesaler to withhold goods.

11. Investigation by Commission into withholding of goods.

12. Prohibition on withholding of goods from persons not approved by a trade association.

13. Prohibition on coercing supplier or wholesaler to withhold supplies.

14. Imposition by individual supplier of terms and conditions for acceptance of orders.

15. Prohibition of unfair differentiation by supplier or wholesaler.

16. Prohibition on restricting entry to trade.

17. Prohibition of lists of approved traders.

18. Prohibition on preventing co-operative societies from engaging in supply and distribution of goods.

S.I. No. 332 of 1956.

RESTRICTIVE TRADE PRACTICES (GROCERIES) ORDER, 1956.

I, WILLIAM NORTON, Minister for Industry and Commerce, having considered a report of the Fair Trade Commission under section 7 of the Restrictive Trade Practices Act, 1953 (No. 14 of 1953), into the conditions obtaining in regard to the supply and distribution of grocery goods and provisions, hereby, in exercise of the powers conferred on me by section 9 of the said Act, order as follows :

1. This Order may be cited as the Restrictive Trade Practices (Groceries) Order, 1956.

2. In this Order--

" the Commission means the Fair Trade Commission ;

" discount " and " markup " include, respectively, a discount or markup however expressed ;

" goods to which this Order applies " means grocery goods and provisions, namely, such foodstuffs (excluding flour, wheatenmeal, bread, flour confectionery (other than biscuits), mineral waters, fresh fruit, fresh vegetables, fresh milk and cream) and household necessaries as are ordinarily sold in grocery and provision shops ;

" supplier " means a manufacturer or importer for resale of goods to which this Order applies and includes any person who processes, blends, cans, packs or otherwise prepares such goods for resale to wholesalers or retailers and also includes any person who acts as the sole distributor of such person's products to wholesalers or retailers ;

" wholesaler " means any person who purchases from a supplier goods to which this Order applies for resale to retailers ;

" retailer " means any person who resells goods to which this Order applies to the public.

3. (1) Save as hereinafter provided, a supplier or wholesaler shall not require or induce or attempt to require or induce any person (whether directly or indirectly, by agreement, threat, promise or any other means) to resell or offer for resale goods to which this Order applies--

(a) at a fixed price specified by the supplier or wholesaler or established by agreement or otherwise, or

(b) at a price not less than a minimum price specified by the supplier or wholesaler or established by agreement or otherwise, or

(c) at a fixed markup or a fixed discount specified by the supplier or wholesaler or established by agreement or otherwise, or

(d) at a markup not less than a minimum markup specified by the supplier or wholesaler or established by agreement or otherwise, or

(e) at a discount not greater than a maximum discount specified by the supplier or wholesaler or established by agreement or otherwise.

(2) Nothing in paragraph (1) of this Article shall prevent a supplier from advertising or otherwise specifying resale prices for goods to which this Order applies, provided such prices are maximum prices.

4. Save as hereinafter provided, there shall not be any joint or collusive action (whether directly or indirectly or by way of agreement or understanding or otherwise) between two or more persons, each of them being a supplier, a wholesaler or a retailer, which has or is likely to have the effect of ensuring that goods to which this Order applies will be resold or offered for resale--

(a) at a fixed price or at a price not less than a specified minimum price, or

(b) at a fixed markup or at a markup not less than a specified minimum markup, or

(c) at a fixed discount or at a discount not greater than a specified maximum discount, or

(d) on any other basis which involves eliminating or limiting competition in price between suppliers or between wholesalers or between retailers.

5. There shall not be any agreement, arrangement or understanding (whether induced by threat, promise or otherwise) between two or more suppliers or between two or more wholesalers as to the prices at which they will supply goods to which this Order applies to other persons or as to the discount to be allowed or the markup to be applied in respect of such goods.

6. Subject to Article 8 of this Order, where a supplier indicates or recommends a resale price for goods to which this Order applies such price shall not be binding as a minimum resale price.

7. (1) Save as hereinafter provided, a supplier or wholesaler shall not withhold goods to which this Order applies from or otherwise discriminate against any person by reason of--

(a) the prices charged or proposed to be charged by him on the resale of the goods, or

(b) his refusing to resell or offer the goods for resale on any basis mentioned in paragraph (1) of Article 3 or in Article 4 of this Order, or

(c) his reselling or offering to resell the goods--

(i) at a price less than a fixed or minimum price specified by a supplier or wholesaler or established by agreement or otherwise, or

(ii) at a markup less than a fixed or minimum markup specified by a supplier or wholesaler or established by agreement or otherwise, or

(iii) at a discount greater than a fixed or maximum discount specified by a supplier or wholesaler or established by agreement or otherwise.

(2) Paragraph (1) of this Article shall not prevent a supplier from withholding goods from a person who resells or offers for resale such goods at a price exceeding a maximum resale price specified by that supplier.

8. (1) A supplier may, in relation to goods to which this Order applies and to which his brand is affixed, notify retailers of a wholesale price at or below which they shall not resell or offer for resale such goods and, if any retailer who has been so notified resells or offers for resale such goods at or below that price and fails to give to the supplier an acceptable undertaking to discontinue doing so, the supplier may withhold supplies of such goods from that retailer.

(2) For the purposes of paragraph (1) of this Article, a wholesale price shall be deemed to be--

(a) the price charged by the supplier to retailers (other than multiple shop firms) before the deduction of quantity discounts applicable to the particular goods, or

(b) where the supplier does not supply retailers direct, his indicated or recommended wholesale price for the particular goods before the deduction of quantity discounts, or

(c) in the case of goods to which a scale of quantity discounts but not a trade discount is applied by the supplier, the price charged to retailers purchasing the minimum quantity prescribed in that scale.

(3) The Commission may require a supplier to substitute for a wholesale price notified to retailers under paragraph (1) of this Article the average price charged by him for such goods to one or more classes of retailers in one or more areas and over a period specified by the Commission, and the supplier shall comply with the requirement and shall notify any retailer whom he has notified under the said paragraph (1) of the substitution.

9. (1) Subject to paragraph (2) of this Article, a supplier may withhold goods to which this Order applies and to which his brand is affixed from a retailer who advertises or displays the supplier's indicated or recommended retail price in close conjunction with that retailer's own price for such goods and who fails to give to the supplier an acceptable undertaking to discontinue doing so.

(2) Where a supplier indicates or recommends a retail price for such goods by means of a price marked on the goods or their container, a retailer may display, within the premises where the goods or their container are exposed for sale, a price less than the price so marked.

10. A supplier may request a wholesaler to withhold supplies of goods to which this Order applies from a retailer who--

(a) resells or offers for resale such goods at a price exceeding a maximum resale price specified by that supplier, or

(b) resells or offers for resale such goods to which that supplier's brand is affixed at a price at or below the wholesale price notified to the retailer under Article 8 of this Order by the supplier and fails to, give the supplier an acceptable undertaking to discontinue doing so, or

(c) advertises or displays that supplier's indicated or recommended resale price for any such goods to which the supplier's brand is affixed in close conjunction with the retailer's own price and fails to give to the supplier an acceptable undertaking to discontinue doing so,

and, if the wholesaler fails or refuses, to comply with the request, the supplier may withhold supplies of such goods from that wholesaler.

11. (1) Where supplies of goods are withheld under Article 8, Article 9 or Article 10 of this Order, the supplier concerned shall immediately notify the Commission in writing of the action taken and the reasons therefor.

(2) Where the Commission receive a notification under paragraph (1) of this Article, the Commission may, on their own initiative, and shall in the event of a complaint being received by them from the person from whom supplies have been withheld, investigate the matter.

(3) If, after an investigation made pursuant to paragraph (2) of this Article, the Commission inform a supplier that they are of opinion that the circumstances are not such as to justify the continued withholding of supplies, then, as from the date on which such a supplier is so informed, Articles 8, 9 and 10 of this Order shall not permit the continued withholding of supplies from the wholesaler or retailer concerned.

12. A supplier or wholesaler shall not withhold goods to which this Order applies from any person or discriminate against any person as to the terms on which such goods are supplied, because that person is or is not a member of a trade association or is not approved by a trade association or because that person's name appears or does not appear on any list prepared, maintained, published or issued by a trade association or because representations that supplies should be withheld from such person or be made available only on specified terms have been made by or on behalf of any trade association.

13. No trade association or other combination of persons shall as respects goods to which this Order applies, coerce or induce or attempt to coerce or induce a supplier or a wholesaler to withhold supplies from any wholesaler or retailer or discriminate against any wholesaler or retailer as to the terms on which such goods may be supplied to them.

14. (1) Subject to the provisions of this Order, an individual supplier may apply to the acceptance of orders for goods to which this Order applies such terms and conditions, including conditions as to the size or frequency of such orders, as are reasonable in the interests of efficiency and economy in production and distribution or are necessary in the legitimate interests of the supplier's business, provided that such terms and conditions shall be applied in an equitable manner.

(2)A supplier shall, upon the request of any person engaged in or proposing to engage in trade in goods to which this Order applies, make available to such person a statement of the relevant terms and conditions in operation.

(3) The Commission may, on their own initiative or following a complaint made to them, require a supplier to lodge with them any terms or conditions applied by him to the acceptance of orders for goods to which this Order applies and the supplier shall comply with such requirement.

15. (1) A supplier or wholesaler shall not, as respects the terms and conditions on which goods (of like grade, quality or quantity) to which this Order applies may be obtained from him, differentiate, by means of any rebate, refund, discount, credit or any other similar concession or by the provision of any service, facility or other consideration of value, between one purchaser for resale and another purchaser for resale (being purchasers of the same class).

(2) Paragraph (1) of this Article shall not apply to differentiation, based on bona fide considerations of creditworthiness, by a supplier or wholesaler as to the time within which payment is to be made to him for goods supplied.

16. No supplier, wholesaler or retailer shall be a party to any agreement, arrangement or understanding (whether induced by threat, promise or otherwise) which has or is likely to have the effect of limiting or restricting entry to trade in any goods to which this Order applies.

17. (1) No trade association or other combination of persons shall prepare, maintain, publish or issue or cause to be prepared, maintained, published or issued any lists of approved or non-approved persons or of persons classified in any way, which have or are likely to have the effect of limiting or restricting entry to trade in goods to which this Order applies or which are intended to be used as a basis for regulating or influencing the supply and distribution of such goods or the terms and conditions on which such goods will be supplied.

(2) No supplier, wholesaler or other person shall publish or issue or cause to be published or issued any such list as is referred to in paragraph (1) of this Article which has or is likely to have the effect of limiting or restricting entry to trade in goods to which this Order applies or which is intended to be used as a basis for regulating or influencing the supply and distribution of such goods or the terms and conditions on which such goods will be supplied.

(3) No person or combination of persons shall prepare, maintain, publish or issue any lists, or do any other act, designed to secure a boycott of any supplier or wholesaler, or to affect adversely the terms of supply of such goods to any wholesaler, because he has refused to do any act which he is prohibited from doing by this Order.

18. No trade association or other combination of persons shall prevent or attempt to prevent any society registered under the Industrial and Provident Societies Acts, 1893 to 1936, whose objects permit the carrying on of trade in goods to which this Order applies, from receiving, on appropriate terms, supplies of such goods for resale or from engaging in the distribution of such goods.

GIVEN under my Official Seal, this 31st day of December, 1956.

(Signed) WILLIAM NORTON,

Minister for Industry and Commerce.

EXPLANATORY NOTE.

This Order, which requires to be confirmed by an Act of the Oireachtas before it will have the force of law, prohibits resale price maintenance and other restrictive trade practices in relation, to the supply and distribution of grocery goods and provisions.