Treasury consults on mandatory supermarket code
Make us a preferred source
Make us a preferred source on Google
The news: Exposure drafts of a new mandatory Food and Grocery Code and related amendments to the Competition and Consumer Act for consultation have been released by the Government.
The context: Announcing the consultation, Assistant Minister for Competition, Charities and Treasury, Andrew Leigh said the new code would see Aldi, Coles, Woolworths and Metcash subject to multi‑million‑dollar penalties for serious breaches.
The mandatory code, which the federal government announced earlier this year, aims to increase protections for suppliers by introducing strengthened dispute resolution arrangements, and new obligations to protect suppliers from retribution.
The code will be supported by the creation of an anonymous supplier and whistle‑blower complaints pathway through the Australian Competition and Consumer Commission (ACCC).
The new code implements the recommendations of former Labor politician Craig Emerson’s independent review of the code in full and would commence on 1 April, 2025.
Related amendments to the Competition and Consumer Act will introduce higher maximum penalties for breaches of the code, as well as higher infringement notice penalties for alleged breaches of the code and other industry codes.
Legislation is due to be introduced into the Parliament later this year.
What they said: "The new code will help to ensure our supermarkets are as competitive as they can be so Australians get the best prices possible," Leigh said in a Treasury media release.
"Strengthening the Food and Grocery Code is only one part of the Government’s broad competition reform agenda, which includes an ACCC supermarket inquiry, progress on the most significant merger reforms in Australia in almost 50 years, consultation on reforming non‑compete clauses, funding for CHOICE to conduct quarterly price monitoring and working with the states and territories to revitalise National Competition Policy," he said.
The source: Treasury media release
