November 26th 2024.
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Today, a new legislation was introduced to Federal Parliament that will hold supermarkets accountable for their actions. Under this mandatory code of conduct, supermarkets could face hefty penalties worth millions of dollars if they fail to comply. These penalties will be the highest in any industry code, with the intention of promoting fairness for both farmers and families.
Currently, the code is voluntary, but starting next April, it will become mandatory. This means that supermarkets will be legally obliged to adhere to the code and could face severe consequences if they don't. The new law states that supermarkets could be fined up to $10 million, three times the amount they benefited from the breach, or 10% of their previous year's turnover. Additionally, the Australian Competition and Consumer Commission (ACCC) will have the power to issue infringement notices to supermarkets found in violation of the code.
According to Competition Minister Andrew Leigh, the goal is to establish a system that enforces significant penalties for any misconduct from supermarkets. He believes that this crackdown will not only benefit shoppers at the register, but also farmers and suppliers in their negotiations with supermarkets. In other words, this legislation aims to create a fair playing field for all parties involved.
The Food and Grocery Code of Conduct was first introduced in 2015 as a means of improving business practices in the supermarket industry. It specifically focuses on the relationships between retailers, wholesalers, and suppliers. While suppliers are automatically covered by the code, supermarkets have the option to voluntarily sign up. However, with the new legislation in place, all major supermarkets such as Woolworths, Coles, Aldi, and Metcash have now signed up.
In September, the ACCC took legal action against the major supermarkets for misleading customers. Prime Minister Anthony Albanese stood by this decision, vowing to protect Australians against inflated prices. He described the behavior of supermarket giants as unacceptable and emphasized the need for a government that stands with its people during tough times. He also expressed the importance of having a strong consumer watchdog, which is why the ACCC's actions are crucial in ensuring fair prices for consumers.
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