I currently own a small business franchise delivering brand name products to major grocery chains in Pa. A major grocery store chain has decided to implement that if you run out of product on your shelf, store management has been directed to fine the vendor $100-$200 for low or poor shelf conditions. Is this legal and where can I find info. on how to pursue this issue. This has actually happened to me back in March of this year. The same chain also performs daily random audits, and if you are short or over product with that delivery they fine you $25-$100. They are making major money off lots of companies and no one has the guts to stand up to them.
I agree, you should check your contract. I am not sure if there are laws because it is a business transaction with a contract.
Does anyone have experience from a vendor or the grocery side?
JimD
Read the contract that you sign with them. I know this that if you rent a space in a mall and dont open your shop. The mall have the right to fined you (who want to go to a mall when shop dont open regularly). So I guess your situation is similar to that logic. Since the grocery wont be making any money if your shelf is empty (nothing to sell), also if most supplier do this the grocery will lose consumer interest since they cant provide a one stop shoping place. Customer will most likely shop somewhere else.
JimD | Former Moderator | 11/8/2010 - 5:45 am
gretcyshaw | Creator | 11/5/2010 - 3:38 am
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