The Australian Competition and Consumer Commission (ACCC) has introduced a mandatory Food and Grocery Code of Conduct, which now applies to supermarkets and wholesalers with annual revenues exceeding $5 billion.
The code requires major retailers and wholesalers to establish written supply agreements, act in good faith, and ensure suppliers are not penalised for asserting their rights under the code. Non-compliance can result in significant penalties, with fines potentially reaching $10 million, three times the benefit gained, or 10% of the company’s annual turnover, whichever is highest. The ACCC now has the authority to issue infringement notices and pursue legal action against violators.
In addition, the ACCC has launched a new anonymous reporting portal, allowing businesses to report potential breaches of the code. These reports can also be submitted through the ACCC’s Infocentre.
Previously voluntary, the code is now legally binding for eligible businesses. For more details, businesses can visit the ACCC’s website under “Food and Grocery Code of Conduct.”