Supermarkets could face huge fines if they breach the Government's new code of conduct for the sector.

A cabinet paper shows supermarkets may be fined up to $10 million or three times any commercial gain they get from any breach.

If that figure cannot be calculated, they may be fined up to ten percent of revenue during the breach period.

Consumer NZ Chief Executive Jon Duffy told Mike Hosking says it's a good start.

“It certainly sends a message to supermarkets and it is a strong deterrent not to break the code.”

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