A CONSULTATION paper entitled “Improving Commercial Relationships in the Food and Grocery Sector” along with a draft of the “Food and Grocery Code of Conduct” has been released by the Australian Government for public and industry consultation.
Late last year, Woolworths, Coles and the Australian Food & Grocery Council handed a jointly developed paper to the Government who subsequently redrafted it to comply with competition legislation. The resulting proposal for a voluntary Code of Conduct provides for enforcement action by the ACCC with a range of remedies including injunctions and monetary compensation.
But before the Code can be implemented, the Government is undertaking extensive consultation to be sure it will be effective in establishing a minimum standard of conduct in the industry and that its benefits outweigh the regulatory costs.
The discussion paper was an important step towards achieving a meaningful code and the AFGC has congratulated the Government on progressing an industry-led solution