ACCC chairman Rod Sims says the retailers may not have got off to a great start, but work is underway to ensure the success of the new Food and Grocery Code of Conduct.
Sims told attendees at a food and beverage industry forum today why he had recently written to some in relation to their new agreements with suppliers.
“The ACCC had concerns that some retailers, particularly Aldi and Woolworths, were presenting new supply agreements in a way that might give the impression that suppliers are not able to negotiate the terms of the agreement.
“We have also had concerns about the low level of detail provided in some supply agreements about the circumstances in which retailers can require certain payments.
Sims said that although the ACCC had written expressing its concerns, and had made this action public in late September, this was not a signal that the Code faced great difficulties, but was, instead, a signal that the ACCC will do what it can to ensure the Code succeeds.
“Ensuring suppliers are aware of their rights is crucial to the success of the Code. Our public action was designed to help with this,” Sims said.
The ACCC is the agency responsible for enforcement and compliance of the Code, which came into force in March 2015, and which has been signed by Coles, Woolworths, Aldi and a small Sydney based retailer, About Life.
“We are confident the Code can succeed in achieving its objectives. It can redress the imbalance in bargaining power that often exists between suppliers and larger grocery retailers by prohibiting certain types of unfair conduct, and by requiring retailers to deal with suppliers in good faith at all times,” Sims said.
