Woolworths Group (ASX:WOW) said that its New Zealand unit continues to oppose the proposed "blanket" ban on supplier conditions, a document submitted with the Commerce Commission showed Wednesday.

The supermarket giant said the ban removes flexibility for suppliers to reach mutually-beneficial agreements, is inconsistent with the Grocery Industry Competition Act, and risks legal inconsistency, higher costs, reduced consumer benefits, and adverse outcomes like reduced product ranges.

The company recommended retaining contractual flexibility, which would reduce risks.