Grocery Industry Competition Regulations 2023
Grocery Industry Competition Regulations 2023
Grocery Industry Competition Regulations 2023
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Version as at 1 May 2026

Grocery Industry Competition Regulations 2023
(SL 2023/193)
Cindy Kiro, Governor-General
Order in Council
At Wellington this 7th day of August 2023
Present:
Her Excellency the Governor-General in Council
Note
The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.
Note 4 at the end of this version provides a list of the amendments included in it.
These regulations are administered by the Ministry of Business, Innovation, and Employment.
These regulations are made under section 196 of the Grocery Industry Competition Act 2023 on the advice and with the consent of the Executive Council.
Contents
Regulations
1 Title
These regulations are the Grocery Industry Competition Regulations 2023.
2 Commencement
(1)
These regulations come into force on 11 August 2023.
(2)
However, regulation 6 comes into force on 7 September 2023.
3 Interpretation
In these regulations, unless the context otherwise requires, Act means the Grocery Industry Competition Act 2023.
4 Transitional, savings, and related provisions
The transitional, savings, and related provisions (if any) set out in Schedule 1 have effect according to their terms.
Part 1 Application of Act to franchisees and transacting shareholders of interconnected body corporate of regulated grocery retailer
Part 1 heading: inserted, on 28 September 2023, by regulation 4 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
5 Application of same group exception in section 45(2)(b) of Act
Sections 45(2) and (3) and 46 of the Act apply to a person (P) that is a franchisee or transacting shareholder of an interconnected body corporate of a regulated grocery retailer (A) as if—
(a)
P were a franchisee or transacting shareholder of A; and
(b)
for the purpose of section 30 of the Act, P were a member of the same group as A.
6 Application of Parts 2 and 3 of Act
The provisions of Parts 2 and 3 of the Act apply to a person (P) that is a franchisee or transacting shareholder of an interconnected body corporate of a regulated grocery retailer (A) as if—
(a)
P were a franchisee or transacting shareholder of A; and
(b)
for the purpose of section 30 of the Act, P were a member of the same group as A.
Part 2 Grocery supply code
[Revoked]Part 2: revoked, on 1 May 2026, by regulation 4 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
7 Interpretation
[Revoked]Regulation 7: revoked, on 1 May 2026, by regulation 4 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
8 Grocery supply code
[Revoked]Regulation 8: revoked, on 1 May 2026, by regulation 4 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
9 Tier 2 penalties apply to certain contraventions of code
[Revoked]Regulation 9: revoked, on 1 May 2026, by regulation 4 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
10 Tier 4 penalties apply to certain contraventions of code
[Revoked]Regulation 10: revoked, on 1 May 2026, by regulation 4 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Part 3 Grocery Supply Code 2025
Part 3: inserted, on 1 May 2026, by regulation 5 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
11 Interpretation
In this Part, unless the context otherwise requires, code means the Grocery Supply Code 2025 made by the Commission under section 12(1)(a) of the Act.
Regulation 11: inserted, on 1 May 2026, by regulation 5 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
12 Tier 2 penalties apply to certain contraventions of code
The following provisions of the code give rise to a pecuniary penalty under section 127 of the Act:
Obligation to offer to vary existing agreements so that they are consistent with code
(a)
clause 5(2):
Good faith
(b)
clause 6(1) and (2):
Grocery supply agreements
(c)
clause 7(1) and (2):
(d)
clause 8:
(e)
clause 9(1):
(f)
clause 10:
Conduct generally
(g)
clause 11(1):
(h)
clause 12(1) and (2):
(i)
clause 13(1):
(j)
clause 14(1):
(k)
clause 15(1):
(l)
clause 16(1):
(m)
clause 17(1):
(n)
clause 18(1), (2), and (3):
(o)
clause 19(1):
(p)
clause 20(1):
(q)
clause 21(2), (3), (4), (5), (6), (7), and (8):
(r)
clause 22:
(s)
clause 23:
(t)
clause 24(1) and (3):
(u)
clause 25(1):
(v)
clause 26(2) and (3):
(w)
clause 27(1), (2), (3), (4), and (5):
(x)
clause 28(2), (3)(b), (5), and (6):
(y)
clause 29(1) and (2):
(z)
clause 30(1).
Regulation 12: inserted, on 1 May 2026, by regulation 5 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
13 Tier 4 penalties apply to certain contraventions of code
The following provisions of the code give rise to a pecuniary penalty under section 129 of the Act:
Grocery supply agreements
(a)
clause 9(5) and (6):
Conduct generally
(b)
clause 12(4):
(c)
clause 15(4):
(d)
clause 16(5):
(e)
clause 17(5) and (7):
(f)
clause 20(3), (4), and (5).
Regulation 13: inserted, on 1 May 2026, by regulation 5 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Schedule 1 Transitional, savings, and related provisions
Part 1 Provisions relating to these regulations as made
There are no transitional, savings, or related provisions in these regulations as made.
Part 2 Transitional provisions relating to code when first made
Schedule 1 Part 2: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
1 Interpretation
In this Part, unless the context otherwise requires,—
commencement means 28 September 2023
existing agreement has the same meaning as in clause 1(3)(a) of Schedule 1 of the Act
grace period means the period ending on 28 March 2024
Schedule 1 clause 1: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
2 Main rule: code applies to supply of groceries under existing agreements except during grace period
(1)
The code applies in relation to the supply of groceries under an existing agreement.
(2)
In accordance with clause 1 of Schedule 1 of the Act, the code—
(a)
regulates or prohibits conduct, or specifies other requirements, in connection with an existing agreement, with any necessary modifications, as if the agreement were entered into or arrived at after commencement:
(b)
specifies requirements about the content or form of an existing agreement, with any necessary modifications, as if the agreement were entered into or arrived at after commencement.
(3)
Example
A retailer has an existing agreement with a supplier for the supply of cereal. The agreement does not cover many things that are covered by the code.
Schedule 1 clause 2: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
Existing agreements: during grace period
Heading: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
3 Grace period for existing agreements that are inconsistent with clause 7 or 8 of code
(1)
(2)
During the grace period, that requirement of the code does not apply in relation to the supply of groceries under the agreement until the date on which the provision of the agreement is varied under clause 5 of the code.
Example
An existing agreement applies to the supply of biscuits but does not specify any circumstances in which the retailer may reject biscuits. Clause 8(b) of the code provides that an agreement must specify any such circumstances.
This clause provides that the retailer has a 6-month grace period before the requirement of clause 8(b) of the code applies to the retailer.
Clause 5(2) of the code requires the retailer to offer to vary the agreement to make it consistent with clause 8(b) of the code if there are any circumstances in which the retailer may reject the biscuits.
Schedule 1 clause 3: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
4 Grace period for existing agreements that are inconsistent with Part 4 of code
(1)
This clause applies if an existing agreement is inconsistent with a requirement of Part 4 of the code.
(2)
During the grace period, that requirement of the code does not apply in relation to the supply of groceries under the agreement until the date on which the provision of the agreement is varied under clause 5 of the code.
Example
An existing agreement provides that the retailer may reject fresh fruit only within 48 hours of delivery. Clause 21(4) of the code provides that the retailer may reject fresh produce only within 24 hours of delivery.
This clause provides that the retailer has a 6-month grace period before the requirement of clause 21(4) applies to the retailer. Until then, the code will apply with necessary modifications (that is, the rejection rule remains at 48 hours for 6 months or until the agreement is varied (whichever is earlier)).
Clause 5(2) of the code requires the retailer to offer to vary the agreement to make it consistent with clause 21(4) of the code.
Schedule 1 clause 4: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
Existing agreements: after grace period
Heading: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
5 Effect of inconsistent existing agreements after grace period if variation offer made but rejected
(1)
Subclause (2) applies after the grace period ends if—
(a)
a retailer complies with clause 5(2) of the code in respect of an inconsistency between an existing agreement and a requirement of clause 7 or 8 of the code; and
(b)
the offer is a reasonable offer; and
(c)
the supplier rejects the offer.
(2)
(3)
Subclause (2) applies despite regulation 6.
Example
An existing agreement does not specify the period within which the retailer must pay the supplier for fresh fruit, as required by clause 8(c) of the code. The retailer offers to vary the agreement to specify that the retailer must pay the supplier within 3 months of the supplier’s invoice. The supplier thinks that this is unreasonably long and rejects the variation offer.
The retailer would not be in breach of clause 8 of the code (by reason of being a party to an existing agreement that is inconsistent with the code) if the retailer has made a reasonable variation offer.
However, Part 4 of the code applies after the grace period ends. If the retailer waits to pay the supplier until just before the 3-month period expires, the retailer may be liable for a pecuniary penalty for failure to comply with clause 12(1)(b) of the code. Clause 12(1)(b) requires retailers to pay suppliers within a reasonable time after receiving the supplier’s invoice, regardless of the time frame set out in the agreement.
The supplier may refer the dispute to the dispute resolution process provided for in the Act, because the dispute (about the period within which the retailer must pay the supplier for the groceries) arises from requirements under the grocery supply code.
Schedule 1 clause 5: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
6 Effect of other inconsistent existing agreements after grace period
(1)
Subclause (2) applies after the grace period ends if there continues to be an inconsistency between a provision of an existing agreement and a requirement of Part 4 of the code.
(2)
A contravention of that requirement of the code by the retailer in respect of that provision may give rise to a pecuniary penalty.
Example
An existing agreement specifies that the supplier is required to make payments as compensation for shrinkage (the loss of grocery products due to theft or accounting error). Clause 13 of the code prohibits such payments.
The retailer would not be in breach of clause 8 of the code (by reason of being party to an existing agreement that is inconsistent with the code) if the retailer has made a reasonable variation offer (see clause 5).
However, if the retailer continues to require such payments, the retailer may be liable for a pecuniary penalty for failure to comply with clause 13 of the code.
The supplier may refer the dispute to the dispute resolution process provided for in the Act because the dispute arises from requirements under the grocery supply code if the amount in dispute (that is, the amount of the payment that the retailer is requiring for shrinkage) is less than $5 million.
Schedule 1 clause 6: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
Existing agreements: miscellaneous provisions
Heading: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
7 Clause 9 of code
Clause 9 of the code does not apply during the grace period.
Schedule 1 clause 7: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
8 Other remedies
See also clause 1(2) of Schedule 1 of the Act.
Example
An existing agreement specifies that the supplier is required to make payments as compensation for shrinkage. Clause 13 of the code prohibits such payments.
The retailer continues to require such payments after the grace period ends. The supplier refuses to pay. The supplier is not in breach of the agreement, so the retailer has no remedy for breach of contract. The retailer cannot charge a penalty under the agreement for what the retailer considers to be an unpaid amount.
Schedule 1 clause 8: inserted, on 28 September 2023, by regulation 6(a) of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220).
Schedule 2 Grocery supply code 2023
[Revoked]Schedule 2: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Contents
Part 1 Preliminary
[Revoked]Schedule 2 Part 1: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
1 Title
[Revoked]Schedule 2 clause 1: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
2 Purpose of code
[Revoked]Schedule 2 clause 2: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
3 Interpretation
[Revoked]Schedule 2 clause 3: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
4 When this code applies
[Revoked]Schedule 2 clause 4: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
5 Obligation to offer to vary existing agreements so that they are consistent with code
[Revoked]Schedule 2 clause 5: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Part 2 Good faith
[Revoked]Schedule 2 Part 2: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
6 Obligation to deal with suppliers in good faith
[Revoked]Schedule 2 clause 6: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Part 3 Grocery supply agreements
[Revoked]Schedule 2 Part 3: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
7 Grocery supply agreement must be in writing and retained
[Revoked]Schedule 2 clause 7: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
8 Matters to be covered by agreement
[Revoked]Schedule 2 clause 8: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
9 Unilateral variation of agreement
[Revoked]Schedule 2 clause 9: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
10 Retrospective variation of agreement
[Revoked]Schedule 2 clause 10: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Part 4 Conduct generally
[Revoked]Schedule 2 Part 4: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Subpart 1—Transport or logistics services
[Revoked]Schedule 2 subpart 1: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
11 Transport or logistics services
[Revoked]Schedule 2 clause 11: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Subpart 2—Paying suppliers
[Revoked]Schedule 2 subpart 2: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
12 Payments to suppliers
[Revoked]Schedule 2 clause 12: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Subpart 3—Requiring payments from suppliers
[Revoked]Schedule 2 subpart 3: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
13 Payments for shrinkage
[Revoked]Schedule 2 clause 13: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
14 Payments for wastage
[Revoked]Schedule 2 clause 14: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
15 Payments as condition of being supplier
[Revoked]Schedule 2 clause 15: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
16 Payments for retailer’s business activities
[Revoked]Schedule 2 clause 16: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
17 Funding promotions
[Revoked]Schedule 2 clause 17: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
18 Delisting products
[Revoked]Schedule 2 clause 18: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
19 Process requirements relating to delisting
[Revoked]Schedule 2 clause 19: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
20 Funded promotions
[Revoked]Schedule 2 clause 20: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
21 Fresh produce standards and quality specifications
[Revoked]Schedule 2 clause 21: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
22 Unduly hindering or obstructing supply to competitors
[Revoked]Schedule 2 clause 22: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
23 Business disruption
[Revoked]Schedule 2 clause 23: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
24 Intellectual property rights
[Revoked]Schedule 2 clause 24: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
25 Confidential information
[Revoked]Schedule 2 clause 25: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
26 Product ranging, shelf space allocation, and range reviews
[Revoked]Schedule 2 clause 26: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
27 Transfer of intellectual property rights
[Revoked]Schedule 2 clause 27: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
28 Price increases
[Revoked]Schedule 2 clause 28: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
29 Freedom of association
[Revoked]Schedule 2 clause 29: revoked, on 1 May 2026, by regulation 6 of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58).
Rachel Hayward,
Clerk of the Executive Council.
Issued under the authority of the Legislation Act 2019.
Date of notification in Gazette: 10 August 2023.
Notes
1 General
This is a consolidation of the Grocery Industry Competition Regulations 2023 that incorporates the amendments made to the legislation so that it shows the law as at its stated date.
2 Legal status
A consolidation is taken to correctly state, as at its stated date, the law enacted or made by the legislation consolidated and by the amendments. This presumption applies unless the contrary is shown.
Section 78 of the Legislation Act 2019 provides that this consolidation, published as an electronic version, is an official version. A printed version of legislation that is produced directly from this official electronic version is also an official version.
3 Editorial and format changes
The Parliamentary Counsel Office makes editorial and format changes to consolidations using the powers under subpart 2 of Part 3 of the Legislation Act 2019. See also PCO editorial conventions for consolidations.
4 Amendments incorporated in this consolidation
Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2026 (SL 2026/58)
Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (SL 2023/220)
"Related Legislation
"Related Legislation
"Related Legislation
Versions
Grocery Industry Competition Regulations 2023
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