COLES IN COURT CASE

THE Australian Competition and Consumer Commission (ACCC) is bringing legal action against grocery giant Coles for what it calls ‘unconscionable’ conduct against small suppliers. The ACCC claim Coles has unfairly attempted to seek $16 million in rebates from its small suppliers for upgrades made to the retailer’s supply chain.

“The ACCC alleges that Coles used undue pressure and unfair tactics in negotiating with suppliers, provided misleading information and took advantage of its superior bargaining position, so that its overall conduct was in all the circumstances unconscionable,” says ACCC chairman Rod Sims.
Coles has denied any wrongdoing, saying over the past five years it has worked hard to significantly improve its relationships with its 200 suppliers.

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