A number of members contacted the BTHA with their concerns over the demands that had been made, causing the UK trade body to make a public statement.
"It appears that, without prior consultation, suppliers are to be taxed at around five per cent of their turnover to finance investment by Woolworths.
" In addition to the financial contribution to be deducted from a supplier’s account, new payment terms and an increased settlement discount have been introduced with effect from February 1st 2007, again without any prior consultation.
"Given the summary nature of the demands made, the Association understands that members affected are giving a robust response in return and requesting the courtesy of a negotiated agreement."
The BTHA insists that the information contained in Woolies' briefing note last week, whilst highlighting some of the developments which may be of interest to the toy industry, should not be taken to constitute legal advice or opinion.
Finally, the BTHA advises members to seek specific advice on any matters which they feel may affect their rights or obligations.