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Act relating to good commercial practices in the grocery supply chain
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- Act relating to good commercial practices in the grocery supply chain
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Chapter 1 Introductory provisions
- Section 1. Purpose
- Section 2. Scope
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Act relating to good commercial practices in the grocery supply chain
Amendment Act incorporated in this text: Last amended by Act 4 March 2022 No. 7 in force from 22 June 2022.
This is an unofficial translation of the Norwegian version of the Act and is provided for information purposes only. Legal authenticity remains with the Norwegian version as published in Norsk Lovtidend. In the event of any discrepancy, the Norwegian version shall prevail.
The translation is provided by Dagligvaretilsynet/Norwegian Grocery Authority.
Chapter 1 Introductory provisions
Section 1.Purpose
The Act shall contribute to the effective utilization of society's resources and safeguard consumers' interests by promoting probity, predictability and loyalty in contractual relationships between traders in the grocery industry.
🔗Del paragrafSection 2.Scope
The Act applies to negotiations and agreements on deliveries of groceries
The Act does not apply to sales to consumers. Neither does the Act apply to negotiations and agreements between primary producers and industry players.
The Act applies to negotiations and agreements that are made, have effect or are suitable to have effect in Norway.
🔗Del paragrafChapter 2 Good commercial practices
Section 3.Good commercial practices
Actions contrary to good commercial practices must not be carried out in business relations between traders in the grocery industry. Good commercial practices shall be based on probity, predictability and loyalty.
🔗Del paragrafSection 4.Duty to inform
When negotiating and fulfilling agreements regarding supply of groceries, each of the contracting parties are obliged to provide information that they are aware of and that they have reason to believe is of importance to the other party. The duty to inform does not apply to information that the parties have legitimate grounds to keep secret.
🔗Del paragrafSection 5.Protection of the parties' investments
If one party in good faith has made investments or other measures in understanding with the other party, the latter must not act in a way that is contrary to the legitimate expectations that have occurred.
🔗Del paragrafSection 6.Written agreements and clarity
Agreements must be made in writing and clearly describe the parties' delivery obligations. One party cannot unilaterally change the agreement.
🔗Del paragrafSection 7.Responsibility for shrinkage and customer complaints
The agreement must regulate the responsibility for shrinkage and customer complaints.
🔗Del paragrafSection 8.De-listing and termination
The agreement must include deadlines for notification of de-listing of products and for termination of the contractual relationship. De-listing must be notified even if the agreement otherwise stipulates a period for when de-listing can take place. De-listing requires a factual basis. De-listing must be justified in writing if required by a party to the agreement.
🔗Del paragrafSection 9.Protection against imitations
Traders in the grocery industry must not use copies of distinguishing marks, products, catalogues, advertising materials or other produced items in such a manner and under such circumstances that the use must be considered an unfair exploitation of the efforts or results of another party and presents a risk of confusion.
🔗Del paragrafSection 10.Threats
Traders in the grocery industry must not use words and actions that are likely to cause serious fear, for example threats of undue reprisals or the spread of false information.
🔗Del paragrafChapter 3 Supervision, enforcement and review
Section 11.The Norwegian Grocery Authority
The Norwegian Grocery Authority monitors compliance with provisions of this Act. The Authority provides guidance and information about the Act and monitors that orders and prohibitions laid down in this Act are complied with.
The Norwegian Grocery Authority is empowered to issue orders pursuant to Section 12 and make decisions in accordance with Sections 15 through 17, which may be appealed to the Market Council pursuant to Section 18.
The Norwegian Grocery Authority shall emphasize consideration to the interests of consumers when enforcing the Act.
The Norwegian Grocery Authority is an independent administrative body that is administratively subordinate to the Ministry. The Norwegian Grocery Authority is led by a director appointed by the King.
The Norwegian Grocery Authority may neither be instructed about decisions in individual cases nor be given general instructions on enforcement of the Act.
The King or the Ministry is not entitled to overturn the Norwegian Grocery Authority's decisions.
🔗Del paragrafSection 12.Duty to provide information
Everyone has a duty to provide the Norwegian Grocery Authority and the Market Council with the information required by these authorities to carry out their tasks in accordance with the Act. The information may be required in writing or verbally within a set deadline and may be written down and stored as an audio recording. The Norwegian Grocery Authority and the Market Council may also demand the release of all types of information and carriers of such information for investigation.
The duty of confidentiality according to act, order or agreement is not an obstacle for the duty to provide information or the right to carry out an investigation pursuant to the first paragraph. This does not apply to information or carriers of information protected by the duty of confidentiality as laid down in the Criminal Procedure Act Sections 117 through 120.
🔗Del paragrafSection 13.Duty of confidentiality and protection of sources
Anyone who performs services or work for the Norwegian Grocery Authority or the Market Council, is obliged to prevent others from gaining access to or knowledge of information that the person concerned has received in connection with the service or work about the identity of people who have tipped about violations of Sections 3 through 10 and related regulations.
The duty of confidentiality is also binding upon the parties to the case and their representatives.
🔗Del paragrafSection 14.Guidance and dialogue
The Norwegian Grocery Authority shall provide information about the Act and guidance in individual cases.
The Authority shall on its own initiative or based on enquiry seek to influence traders to comply with the Act.
If the Norwegian Grocery Authority finds that one or more of the provisions in Sections 3 through 10 or related regulations have been violated, the Authority may require a written confirmation that the illegality will cease or make a decision in accordance with Section 15.
🔗Del paragrafSection 15.Decisions on violation of Sections 3 through 10
If measures pursuant to Section 14 second paragraph are not sufficient to ensure that one or more of the provisions in Sections 3 through 10 are complied with, the Norwegian Grocery Authority may impose orders and prohibitions that are necessary to ensure compliance.
The Norwegian Grocery Authority may also make decisions confirming that there has been a violation of one or more of the provisions in Sections 3 through 10.
🔗Del paragrafSection 16.Coercive fines
To ensure that orders pursuant to Section 12 or decisions pursuant to Section 15 first paragraph are complied with, a coercive fine to the state may be imposed until compliance has been met.
A final decision on payment of a coercive fine is basis for distrain.
🔗Del paragrafSection 17.Decisions on administrative fines
The Norwegian Grocery Authority may impose administrative fines in case of violation of a decision pursuant to Section 15 first paragraph.
When deciding whether an administrative fine shall be imposed and in the calculation of the sanction, the Public Administration Act Section 46 applies. The Authority shall also emphasize consideration to possible harmful effects for consumers.
A final decision on an administrative fine is basis for distrain.
🔗Del paragrafSection 18.The Market Council's competence
Appeals against decisions pursuant to Sections 15, 16 and 17 and other decisions that may be appealed under the Public Administration Act and the Freedom of Information Act, are handled by the Market Council.
The Market Council is not empowered to overturn the Norwegian Grocery Authority's decisions. The Market Council may only reverse its own decisions insofar as they are deemed invalid.
🔗Del paragrafSection 19.Judicial review
Legal actions regarding decisions taken by the Norwegian Grocery Authority or the Market Council must be directed against the state represented by the Norwegian Grocery Authority. The legal action must be taken within three months from receipt of notification of the decision or from when the person concerned had or should have obtained knowledge of the decision.
🔗Del paragrafChapter 4 Final provisions
Section 20.Regulations
The King may issue regulations on
Section 21.Entry into force and transitional rules
The Act shall enter into force on the date1 decided by the King.
The Norwegian Grocery Authority may only make decisions on agreements or actions that have taken place after the Act has entered into force.