Tesco is already starting to back down over extra supplier fees.
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Tesco, the second-largest supermarket in Ireland, wrote to its large suppliers regarding new fees the UK company is seeking to introduce when it sells products online.
The UK market leader was seeking a charge of between 5p and 12p (6c and 14c) per item sold online.
Since the original communication from Tesco went out on 13 March, the company has faced a huge backlash from suppliers. Grocery legislation in Ireland is governed by Unfair Trading Practices Regulations under the Department of Agriculture.
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A spokesperson for the Department told the Irish Farmers Journal that payments by suppliers for “stocking, display and listing” are prohibited unless both parties agree to them.
The Department further revealed that it is in ongoing contact with Tesco Ireland to “better understand the nature of the planned charge and ensure there is no risk of a breach of UTP regulations”.
Tesco, meanwhile, is now calling the request “the start of a conversation” rather than a demand for payment.
According to its latest forecast, Tesco expects to make £2.5bn (€2.85bn) of profit in 2022.
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Tesco, the second-largest supermarket in Ireland, wrote to its large suppliers regarding new fees the UK company is seeking to introduce when it sells products online.
The UK market leader was seeking a charge of between 5p and 12p (6c and 14c) per item sold online.
Since the original communication from Tesco went out on 13 March, the company has faced a huge backlash from suppliers. Grocery legislation in Ireland is governed by Unfair Trading Practices Regulations under the Department of Agriculture.
A spokesperson for the Department told the Irish Farmers Journal that payments by suppliers for “stocking, display and listing” are prohibited unless both parties agree to them.
The Department further revealed that it is in ongoing contact with Tesco Ireland to “better understand the nature of the planned charge and ensure there is no risk of a breach of UTP regulations”.
Tesco, meanwhile, is now calling the request “the start of a conversation” rather than a demand for payment.
According to its latest forecast, Tesco expects to make £2.5bn (€2.85bn) of profit in 2022.
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