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Carrefour Ordered Through Vendor Contracts After Discovery Using Vendors –

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Majid Al Futtaim (Carrefour) has been ordered by the Competition Court to review all supplier contracts within 30 days after it was discovered to exploit retailers.

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In a statement, the Competition Authority of Kenya (CAK) stated that the decision accurately addressed the ongoing problem of consumer power abuse in the retail sector, which has left suppliers unpaid if the chain retailer collapses.

“The Authority is of the view that this Judgment will go a long way in giving retailers in this sector a better opportunity to negotiate better with consumers, thus ensuring the development of goods and services for the benefit of consumers,” CAK said.

The case was originally filed by Orchards Ltd, alleging compulsion to pay a discount through a listing fee (support fee) of Ksh50,000 for each of its products. An additional payment of 7% to 8% would result from where sellers failed to pay.

Read: Carrefour Launches Online Purchase App And Delivery Fee Sh99

“Appeal will revise all current supply agreements relating to its supermarkets in Carrefour in Kenya within the next thirty (30) days with a view to abolishing all incorrect clauses, especially clauses that provide, cause or facilitate the abuse of consumer power,” including but not limited to the use of the listing fee, the use of privileges, the transfer of commercial risk to the seller, and the direct removal of sellers, “the court ruled.

Carrefour has also been ordered to refund all listing fees received from Orchards Ltd, as well as payment for business lost after the Carrefour Garden Crops in 2019 without notice.

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