The Australian Competition and Consumer Commission (ACCC) says that while it welcomes industry efforts to develop a code of conduct to address unfair practices in the grocery sector, more work needs to be done.
The ACCC is calling for issues around enforceability and coverage to be addressed before a conclusion is reached.
ACCC Chairman Rod Sims, who addressed the Australian Food and Grocery Council’s Industry Leaders Forum in Canberra, said a code of conduct that provides clear rights and legally enforceable norms of conduct would be of considerable assistance to food and grocery industry participants.
“However, many of the protections of the proposed Code are qualified and retailers and suppliers are able to agree to ‘contract out’ of Code provisions,” Sims said.
Sims also welcomed the Harper Competition Review Draft Report, including the review panel’s consideration of Australia’s competition laws.
“In doing so, they have clearly had regard to established international approaches to setting the appropriate boundaries of such laws. Australia’s competition laws are behind international best practice in important respects.”
Sims broadly welcomed the Panel’s recommendation on “concerted practices”, the misuse of market power, and in relation to merger assessment.
