The Times Australia
The Times World News

.

Albanese government will impose mandatory code and big penalties to stop supermarkets treating suppliers badly

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra

Supermarkets guilty of anti-competitive behaviour towards suppliers will face large penalties under a mandatory Food and Grocery Code of Conduct the Albanese government will implement.

The government has accepted all the recommendations in the final report of an inquiry done by a former Labor minister Craig Emerson.

The investigation followed complaints of the big supermarkets squeezing small suppliers especially those producing fruit and vegetables.

Emerson’s central recommendation was to make mandatory the present voluntary code, with big penalties for serious breaches.

The planned maximum penalty will be the greatest of $10 million, three times the benefit gained from the contravening conduct, or 10% of turnover in the preceding 12 months.

Emerson says in his final report, released by the government: “Making the Code mandatory is essential to ensuring it is effective in addressing the heavy imbalance in market power between supermarkets and their suppliers, especially their smaller suppliers”.

He says the proposed penalties are the heaviest of any industry code.

There will also be better processes for resolving disputes.

Emerson says that although, constitutionally, a mandatory code can’t impose binding arbitration, Woolworths, Coles, ALDI and Metcash have agreed in principle to be bound by arbitration.

There will also be strengthened protections against the big supermarkets trying to extract retribution against small players that complain about them, as well as protections for suppliers of fresh produce.

The mandatory code would cover all grocery retailers and wholesalers with an annual turnover of more than $5 billion. This would at present be Woolworths, Coles, ALDI and Metcash. Emerson says Costco is in time likely to pass this threshold and so come under the code.

Amazon could also come under the code if it began offering a full range of groceries and fresh fruit and vegetables exceeding the $5 billion threshold.

Emerson says he considered the arguments to bring other businesses into the code, including Bunnings’ sale of nursery plants, alcohol sales by supermarket affiliates, and sales of non-prescription items by Chemist Warehouse.

But he decided the code should be limited to places for regular grocery shopping as well as Metcash as the largest grocery wholesaler. “This is the purpose for which the code was developed.”

Emerson says the biggest penalties “should apply to obligations on supermarkets to deal with suppliers lawfully and in good faith; have and retain written grocery supply agreements; train staff; and keep records.

"Supermarkets that do not comply with the new obligations to address retribution would also be liable for these highest penalties.”

Emerson recommends the Australian Competition and Consumer Commission establish an anonymous channel to receive complaints about retribution and other code breaches.

The government said in a statement that it was “cracking down on anti-competitive behaviour in the supermarkets sector so people get fairer prices at the checkout”.

The new measures will require changes to legislation and regulations.

The Australian Competition and Consumer Commission is conducting a separate enquiry into the pricing practices of the supermarkets and the relationship between wholesale, including farmgate, and retail prices.

It will report to the government in February 2025 and deliver an interim report in August this year.

When Emerson’s interim report was released earlier this year, the National Farmers’ Federation’s Horticulture Council strongly supported the key recommendations for a mandatory code and hefty penalties.

NFF Horticulture Council Chair Jolyon Burnett said at the time: “If we are going to allow duopolies to exist, we need to make them accountable for any anti-competitive behaviour.

"The next challenge will be to ensure that when the ACCC identifies an abuse of market power, there is a realistic chance of success in court within a commercial timeframe. Otherwise, the announced fines will be futile.”

“For decades, fruit, vegetable and plant nursery growers have been forced to bear the brunt of a tilted playing field, but have been unable to speak out in fear of commercial retribution. To have a report identify these issues is an important milestone,” Burnett said.

The NFF Horticultural Council argued for the inclusion of Bunnings under the code, which hasn’t happened.

Read more https://theconversation.com/albanese-government-will-impose-mandatory-code-and-big-penalties-to-stop-supermarkets-treating-suppliers-badly-233071

Times Magazine

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Science Behind Reverse Osmosis and Why It Matters

What is reverse osmosis? Reverse osmosis (RO) is a water purification process that removes contaminants by forcing water through a semi-permeable membrane. This membrane allows only water molecules to pass through while blocking impurities such as...

Foodbank Queensland celebrates local hero for National Volunteer Week

Stephen Carey is a bit bananas.   He splits his time between his insurance broker business, caring for his young family, and volunteering for Foodbank Queensland one day a week. He’s even run the Bridge to Brisbane in a banana suit to raise mon...

Senior of the Year Nominations Open

The Allan Labor Government is encouraging all Victorians to recognise the valuable contributions of older members of our community by nominating them for the 2025 Victorian Senior of the Year Awards.  Minister for Ageing Ingrid Stitt today annou...

The Times Features

Metal Roof Replacement Cost Per Square Metre in 2025: A Comprehensive Guide for Australian Homeowners

In recent years, the trend of installing metal roofs has surged across Australia. With their reputation for being both robust and visually appealing, it's easy to understand thei...

Why You’re Always Adjusting Your Bra — and What to Do Instead

Image by freepik It starts with a gentle tug, then a subtle shift, and before you know it, you're adjusting your bra again — in the middle of work, at dinner, even on the couch. I...

How to Tell If Your Eyes Are Working Harder Than They Should Be

Image by freepik Most of us take our vision for granted—until it starts to let us down. Whether it's squinting at your phone, rubbing your eyes at the end of the day, or feeling ...

Ways to Attract Tenants in a Competitive Rental Market

In the kind of rental market we’ve got now, standing out is half the battle. The other half? Actually getting someone to sign that lease. With interest rates doing backflips and ...

Top Tips for Finding the Ideal Block to Build Your Home

There’s something deeply personal and exciting about building your own home. You’re not just choosing paint colours or furniture, you’re creating a space that reflects your lifes...

The Home Buying Process Explained Step by Step

Buying a home is a thrilling milestone, but it can also feel like navigating a maze without a map. With paperwork, finances, and decisions at every turn, understanding the home-b...