Carrefour castigated over unfair supplier discounts
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Retail store chain, Carrefour, has received an order to revise all its agreements with about 700 suppliers within a month after a tribunal found it has been exploiting traders. Carrefour will need to remove up to to six items from its supplier contracts that are said to give the store the power to offer ultra-competitive pricing to boost sales and increase market share.
Carrefour was found to be in breach of the law for forcing suppliers to post their own staff at its outlets at the expense of the traders. It was also accused of rejecting goods already delivered.
Carrefour to pay local supplier in exploitation case by MARTIN MWITA Image: HANDOUT
•This is barely a month after being fined Sh222.5 million by the Paris Commerce Court over almost a similar incidence in France.
•The retaier is on the spot on among others, rejecting and returning that had already been delivered.
French based retail giant Carrefour has been ordered to refund a local supplier discounts forced on its products in an abuse of buyer power case.
The retailer has lost an appeal at the Competition Tribunal, where the Competition Authority of Kenya(CAK) and yoghurt supplier, Orchards Limited were respondents.
Carrefour penalised for forced supplier discounts
Summary
Carrefour, Kenya’s second largest retail chain, will need to expunge up to six items from its supplier contracts that are said to give the store the power to offer ultra-competitive pricing to boost sales and increase market share.
The clauses include forcing suppliers to pay a non-refundable fee to do business with it and compelling merchants offering the retail chain goods to provide extra rebates or discounts.
Thursday April 22 2021
By VICTOR JUMA
Summary
Carrefour, Kenya’s second largest retail chain, will need to expunge up to six items from its supplier contracts that are said to give the store the power to offer ultra-competitive pricing to boost sales and increase market share.