Is it possible in a supply contract to insert a clause which says that unless you pay a fee or a charge you will not be able to supply your products to the producer. There is nothing to say that this is contractually unenforceable because it does not constitute a penalty nor is it necessarily caught by consumer legislation as unfair trading practices applies only to consumers. However, it does seem that small suppliers are caught in a situation from which they can not reasonably escape. Is this something that the UK Competition and Markets Authority should be looking at?
The Federation of Small Businesses (FSB) said Premier “should be ashamed of themselves” and claimed that one small company had been asked to hand over £1,700 to secure the chance of future business. “Driving a hard bargain with your suppliers is one thing, but demanding a cash gift under the threat of delisting is downright unfair,” John Allan, national chairman of the FSB, said.