Australia’s new bill targets supermarket misconduct with hefty fines

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</div>  <div class="article-header__content"> <h1 class="article-header__title">Australia’s new bill targets supermarket misconduct with hefty fines </h1> <p class="article-header__excerpt">The new mandatory Food and Grocery Code of Conduct will take effect from 1 April 2025. </p> <div class="article-meta"> <span class="date-published">November 28, 2024</span>  </div>  <div class="gdm-article-actions"> <div class="gdm-article-share"> <span class="button-toggle transparent-with-border gdm-article-share__button">Share <ul class="gdm-article-share-list__container"> <li><a href="https://www.retail-insight-network.com/news/australia-supermarket-misconduct-bill/" class="copy-link">Copy Link</a></li> <li><a href="https://twitter.com/intent/tweet?text=Australia%E2%80%99s+new+bill+targets+supermarket+misconduct+with+hefty+fines%C2%A0%0a&url=https://www.retail-insight-network.com/news/australia-supermarket-misconduct-bill/&via=globaldataplc" class="x-share" target="_blank">Share on X</a></li> 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src="https://www.retail-insight-network.com/wp-content/uploads/sites/18/2024/11/supermarket-shutterstock_2526038409-430x241.jpg" alt="" /> </picture> <figcaption class="c-featured-image__description">Supermarkets will face multi‑million‑dollar penalties for harmful breaches of the Food and Grocery Code of Conduct. Credit: Stepan Skorobogadko/Shutterstock. </figcaption> </figure> </div> <p class="drop-cap">The Australian government has tabled the Treasury Laws Amendment (Fairer for Families and Farmers and Other Measures) Bill 2024 in parliament, targeting supermarket misconduct with hefty fines. </p> <p>The legislation aims to impose potential multi-billion-dollar fines on supermarket chains that fail to adhere to an industry code of conduct ensuring fair treatment of suppliers. </p><div class="in-article-premium-insights mobile-useragent-scalar"><div class="cell large-2 sidebar-scalar mobile-only"> <div class="gdm-widget gdm-recommended-reports gdm-pi-recommended-reports gdm-orange-banner recommended-whitepapers"><h3>Go deeper with GlobalData</h3><ul><li class="grid-x"><div class="cell small-2"><figure><a href=""><img decoding="async" src="https://pr-fr-json-b2b-gdm-figaro1.pantheonsite.io/pharmaceutical-technology/wp-content/themes/goodlife-wp-B2B/assets/img/report.png" alt="ReportsLogo" 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target="_blank">Woolworths Group Ltd</a></h4></article><article class="cell large-12"><h4><a href=https://www.globaldata.com/store/report/?cdmsid=1582349&scalar=true&utm_source=Industry News&utm_medium=18-100275&utm_campaign=companies-intelligence-nonlgp target="_blank">Woolworths Holdings Ltd</a></h4></article><span class="view-all mobile-only"><a href="https://www.globaldata.com/companies/" target="_blank" class="new-window">View all</a></span></div></div></div></div> <p>The bill stipulates that penalties for poor supplier treatment in violation of the code should not be considered just a business expense. It sets out that maximum fines under the Food and Grocery Code could be whichever is the greater: A$10m ($6m), three times the value of the benefit from the misconduct, or 10% of the previous year’s turnover. </p><div id="slot-one"></div> <p>The government describes them as “serious penalties” and “the highest corporate penalties under any industry code”. </p> <p>In addition to increased maximum fines, the bill will also raise infringement notice penalties for alleged breaches of the code.  </p> <p>The Australian Competition and Consumer Commission (ACCC) can issue the notices when it reasonably believes a supermarket has violated the code. 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Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.</span> </div> </form> </div> </div> </div> </div> <p>The measure is part of a wider competition policy agenda by the government, aiming to give families and farmers a fairer deal. This includes tackling shrinkflation through enhancements to the unit pricing code and collaborating with states and territories on planning and zoning regulation reforms. These efforts are intended to foster competition and curb land banking. </p> <p>The bill also mandates that the ACCC be informed of every merger in the supermarket sector and allocates an additional A$30m in funding for the ACCC to address misleading pricing practices in supermarkets and retail sectors. </p><div id="slot-two"></div> <p>Regulations for the new mandatory Food and Grocery Code of Conduct are set to be established in 2024, with the code taking effect from 1 April 2025. </p> <p>The updated code is designed to bolster competitiveness in supermarkets so that Australians can benefit from optimal pricing. </p> <p>Australia Agriculture, Fisheries and Forestry Minister Julie Collins said: “This is about getting a fair go for families and a fair go for farmers. The Albanese Labor government knows how vital our agriculture sector is to Australia, and the Australian economy. </p> <p>“Our farmers produce exceptional, high-quality food and deserve to be on a level playing field with supermarkets. Since coming to government in 2022, we have been delivering for Australian farmers and producers, and today’s important reforms are another significant step forward.” </p> <p>The legislation responds to allegations from politicians and farmers accusing major supermarket chains of exploiting their size to suppress competition, mistreat suppliers and overcharge customers, <a href="https://www.reuters.com/world/asia-pacific/australia-introduces-bill-imposing-big-fines-supermarket-misconduct-2024-11-27/" target="_blank"><em>Reuters</em></a> has reported. </p> <p>These charges were denied by the companies.  </p> <p><a href="https://www.globaldata.com/store/report/?cdmsid=1128147&scalar=true&utm_source=Industry News&utm_medium=18-100275&utm_campaign=company-profile-hyperlink-nonlgp" target="_blank">Coles</a>, <a href="https://www.globaldata.com/store/report/?cdmsid=1193091&scalar=true&utm_source=Industry News&utm_medium=18-100275&utm_campaign=company-profile-hyperlink-nonlgp" target="_blank">Metcash</a> and <a href="https://www.globaldata.com/store/report/?cdmsid=1634386&scalar=true&utm_source=Industry News&utm_medium=18-100275&utm_campaign=company-profile-hyperlink-nonlgp" target="_blank">Aldi</a> have expressed their support for the mandatory code of conduct. <a href="https://www.globaldata.com/store/report/?cdmsid=1582349&scalar=true&utm_source=Industry News&utm_medium=18-100275&utm_campaign=company-profile-hyperlink-nonlgp" target="_blank">Woolworths</a> deferred comment to the Australian Retailers Association (ARA), which also backed the code. </p> <p>Law firm Gerard Malouf & Partners recently launched <a>class action proceedings</a> against Australian supermarket giants Coles and Woolworths for allegedly misleading customers. </p> <div id="Sgpollsputhere"></div><div id="slot-three"></div></p>  <div class="grid-container"> <section class="gdm-newsletter-banner__container"> <div class="gdm-newsletter-banner__wrapper-container 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}, function() { jQuery(this).animate({ height: '100px' }, 300); }); var hoverTime = 1000; var elements = [].slice.apply(document.querySelectorAll('.company-hover-data')); elements.forEach(function (el) { var timeout; el.addEventListener('mouseover', function (){ var match = jQuery(this).attr('data-url'); var hovertitle = jQuery(this).find('h3').html(); var curpostid = jQuery(this).attr('id'); var getpostid = curpostid.replace('company', ''); (function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){ (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o), m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) })(window,document,'script','//www.google-analytics.com/analytics.js','ga'); ga('create', '', {'allowAnchor': true}); ga('set', 'title', hovertitle); ga('send', 'pageview', match); /* if(!jQuery(this).hasClass("verify")){ jQuery(this).addClass("verify"); timeout = window.setTimeout(function () { permutive.track('TabClick', { article: { url: match, title:hovertitle } }); 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