Center

New method takes effect to protect retail suppliers

(Xinhua)
Updated: 2006-11-16 16:29

Supermarkets and chain store giants who used to default payment to goods suppliers or bully them into forking out unnecessary charges have to be careful as a new method took effect on Wednesday.

This first-ever method to secure fair trade between retailers and suppliers will empower suppliers, especially small- and medium-sized ones,to defend their legitimate interests and report offense to relevant authorities.

The instrument came after nine high-ranking managers from bankrupt supermarket chain PriceSmart China were put on trial in October for allegedly stealing and defrauding a total of 120 million yuan from the corporation and individual stores and banks.

While a key chain warehouse of the PriceSmart Membership Shop in Beijing was shut last January to evade suppliers demanding delayed payment, protests culminated after nearly 100 suppliers picketed the shop gates and a drove of shoppers asked for refunds on their membership cards.

The verdicts are yet to come. Assistant Minister of Commerce Huang Hai said the document was tailor-made against such bully retailer.

The method jointly issued by the Ministry of Commerce and other four departments covering pricing, taxation, public securities and industrial and commerce forbids retailers, either local or foreign-invested, to solicit kickbacks from suppliers or force them to pay for the wear and tear of goods on shelf.