ACCC Allows Supermarkets To Continue Soft Plastic Recycling

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AUSTRALIA | The ACCC has granted interim authorisation with conditions to the major supermarkets, Coles Group, Woolworths Group and ALDI Stores, to continue their collaboration to recycle stockpiled soft plastics and continue the pilot in-store collection program.

In June 2023, the ACCC granted authorisation for the supermarkets to collaborate through the Soft Plastics Taskforce in processing the soft plastics stockpiles following the suspension of REDcycle’s collection program. That authorisation was due to expire today, 22nd of July, 2024.

“While it is disappointing that the majority of the soft plastic stockpiles remain in storage, we appreciate that recycling processors came online in 2024, and only now is there capacity to process the stockpiles,” said ACCC Deputy Chair Mick Keogh.

“It is important to keep the stockpiles out of landfills. This interim authorisation will enable the supermarkets to process the stockpiles with the requisite sense of urgency, without any disruption.”

Interim authorisation will allow the soft plastics in-store collection pilot program, which has been operating in 12 Melbourne stores (5 Coles, 5 Woolworths, 2 Aldi), to continue.

“Many consumers want to see a return to instore soft plastics collection and recycling on a wider scale, so we are keen to see that this pilot program continues with some urgency and enables future expansion of instore collections.”

This interim authorisation is subject to the same reporting conditions as the previous authorisation, requiring the major supermarkets to provide the ACCC with quarterly progress reports and minutes of each meeting of the Soft Plastics Taskforce.

It is also a condition that all arrangements must immediately terminate upon the expiry or revocation of the interim authorisation.

“Given the level of consumer concerns, it is important that there is continued transparency about the progress the supermarkets are making in processing the soft plastic stockpiles.”

The ACCC expected that the supermarkets would not prevent or restrict recycling processors from collaborating with other parties in any longer-term collection program.

The ACCC understood that any long-term solution, whether in the form of an industry-led stewardship scheme or otherwise, would likely be the subject of a separate, future application for authorisation.

A public consultation process has commenced on the substantive application, with submissions due by the 6th of August 2024.

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