Coles has rejected unconscionable conduct allegations by the Australian Competition and Consumer Commission in a 34-page defence submitted to the Federal Court in Melbourne this week.
The ACCC has alleged Coles threatened suppliers with sanctions if they declined to pay extra rebates to participate in its Active Retail Collaboration (ARC) supply chain program.
However, according to Fairfax Media, Coles did make more than 98 “admissions” in the document, including using formalised scripts to sell the benefits the ARC program and "escalating" recalcitrant suppliers up the Coles management chain when they resisted.
Coles says it rejects the ACCC allegations that it contravened Australian Consumer Law by acting unconscionably, using misleading information and applying undue influence to force suppliers to participate in the program.
The ACCC has homed in on the ARC program, which Coles devised to improve its earnings by obtaining better trading terms from its suppliers, as part of a broader investigation into allegations that supermarket suppliers were being treated inappropriately by the major supermarket chains, an investigation that is continuing.
In other news, Woolworths this week drew criticism from a new source: the Australian Medical Association and the Pharmacy Guild of Australia lashed out at the retailer for trialling the use of nursing and pharmacy graduates to offer blood pressure, cholesterol and other health checks to its customers in six stores in New South Wales and Queensland.
