AUSTRALIA | The Albanese Government will strengthen the Food and Grocery Code of Conduct, accepting all recommendations of a recent independent review of the Code as part of a wide‑ranging cost‑of‑living crackdown on anti‑competitive behaviour in the food and grocery sector.
These efforts will help ensure supermarkets are as competitive as possible so Australians get the best prices and crack down on anti‑competitive behaviour.
Dr Craig Emerson has been commissioned to review the Food and Grocery Code of Conduct to ensure it protects suppliers and encourages a competitive grocery sector that delivers a fair deal for Australians.
The Review found that the current voluntary Code is failing to address the imbalance of bargaining power between supermarkets and their suppliers, including farmers.
Suppliers fear retribution from supermarkets if they raise concerns or exercise their rights under the Code.
Following extensive stakeholder engagement, the Review’s recommendations to be implemented in full by the Government include:
- Making the Code mandatory for all supermarkets with an annual Australian revenue of greater than $5 billion
- Strengthening formal and informal dispute‑resolution arrangements
- Introducing penalties for the more harmful breaches of the Code with the maximum penalty of $10 million, three times the benefit gained from the contravening conduct or 10 per cent of turnover in the preceding 12 months.
- Creating an anonymous supplier and whistle‑blower complaints mechanism within the Australian Competition and Consumer Commission
- Placing greater emphasis on addressing fear of retribution
- Improving outcomes for suppliers of fresh produce
- Implementing these recommendations will require changes to regulations and the Competition and Consumer Act 2010, which the Government will prioritise.
This Review is an important part of the Albanese Government’s broad competition reform agenda, which includes an ACCC inquiry into supermarket prices, funding for CHOICE to conduct quarterly price monitoring reports and progressing legislation to implement the biggest change to the merger reform system in almost 50 years.
