Document ID: chunk:federal_register_of_legislation:F2024L01651:reg:40
Version: federal_register_of_legislation:F2024L01651
Segment Type: reg
Provision Reference: reg 40
Character Range: 53760–55899

40  Price increases
 (1) This section applies if:
 (a) a large grocery business has a grocery supply agreement with a supplier for the supply of grocery products; and
 (b) the supplier notifies the large grocery business, in writing, of an increase in the price (the price increase) of grocery products supplied under the agreement; and
 (c) if the price increase is in respect of fresh produce that is supplied under the agreement and the agreement includes a mechanism to regularly negotiate the price of that fresh produce—any negotiations about the price increase are not concluded within 5 business days after the supplier informs the large grocery business of the price increase.
Note: Nothing in this section affects the rights of a supplier to determine the price of grocery products that the supplier supplies.
 (2) Within 30 days of being informed by the supplier of the price increase, the large grocery business must notify the supplier, in writing, whether the large grocery business:
 (a) accepts the price increase; or
 (b) accepts an increase in the price of the grocery products supplied under the agreement but does not accept the amount of the price increase; or
 (c) does not accept the price increase.
Civil penalty: 600 penalty units.
Note: If the price increase is in respect of fresh produce, the 5‑business‑day period mentioned in paragraph (1)(c) would be within this 30‑day period.
 (3) If the supplier is notified of a matter referred to in paragraph (2)(b) or (c), the supplier may request the large grocery business to enter into negotiations about an increase in the price for the grocery products.
 (4) A large grocery business that enters into such negotiations must engage in the negotiations in good faith and take all reasonable steps to conclude its position on the negotiations without delay.
Civil penalty: 600 penalty units.
 (5) The large grocery business must not require the supplier to disclose commercially sensitive information in relation to the following:
 (a) the price increase;
 (b) negotiations about an increase in the price for the grocery products.
Civil penalty: 600 penalty units.