Document ID: chunk:federal_register_of_legislation:F2021C00201:clause:1_20
Version: federal_register_of_legislation:F2021C00201
Segment Type: clause
Provision Reference: sch 1 cl 20
Character Range: 31187–32882

20  Funded promotions
 (1) If a supplier agrees to make a payment in support of the promotion of a product (the funded promotion), the retailer or wholesaler may hold the promotion only after giving the supplier reasonable written notice.
 (2) If the retailer or wholesaler orders a grocery product from a supplier in connection with the funded promotion at a promotional price (whether calculated by way of discount, rebate, credit, allowance or otherwise), the retailer or wholesaler must:
 (a) ensure that the basis on which the quantity of the order is calculated is transparent; and
 (b) not over‑order; and
 (c) if the retailer or wholesaler sells any over‑ordered product other than at, or below, the promotional resale price—pay the supplier the difference between the supplier's promotional price and the supplier's full price for the product.
 (3) If the retailer or wholesaler has placed an order for a grocery product with a supplier in connection with the funded promotion, the retailer or wholesaler must not do either of the following without the supplier's written consent:
 (a) cancel the order;
 (b) reduce the volume of the order by more than:
 (i) in the case of an order placed by the retailer—10%; or
 (ii) in the case of an order placed by the wholesaler—20%.
 (4) Subclause (3) does not apply if:
 (a) the retailer or wholesaler gives the supplier reasonable written notice of the cancellation or reduction; or
 (b) the retailer or wholesaler compensates the supplier for any net resulting costs, losses or expenses incurred or suffered by the supplier as a direct result of the retailer or wholesaler failing to give reasonable notice of the cancellation or reduction.