Shipper members of Western Growers have recently been informed by a retailer of proposed fees that will be assessed for delivering “poor quality” produce. The tiered fees assessed could require suppliers to pay hefty fines. In this case, fines of $500, $1000 $5,000 and more, have been announced to begin July 1, 2015.
Based on member feedback and clarification requests, Western Growers has directly engaged the retailer in an attempt to ascertain the need for such fees. In a communication sent last week, Western Growers asserted to the retailer that collaborative solutions from regular interactions with supply chains partners be used rather than financial penalties to address the retailers’ needs. We have offered to facilitate meetings with the retailer and members. Shippers who do not agree to fines, or in-house quality control inspections in lieu of a third party inspection to verify condition such as an USDA or CFIA, are encouraged to contact WG’s Trade Practices Department to understand your rights and remedies.
As a reminder, Western Growers would like to caution members to completely review all vendor agreements that may contain language obligating you to such fees and penalties on arrival problems. The WG Trade Practices Department has invaluable expertise in these areas and can provide guidance to your company with any questions connected to these vendor agreements.
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