June 23rd 2024.
The federal government is set to announce a new mandatory code of conduct that will hold major supermarkets accountable for their treatment of suppliers. This code will come with hefty fines in the billions of dollars, serving as a warning to supermarkets who are found to be mistreating their suppliers. Specifically, this code will apply to supermarkets with an annual revenue of $5 billion or more, and they could face fines as high as $10 million or 10% of their revenue.
One of the key aspects of this code is the implementation of an anonymous complaints process, allowing suppliers to voice their concerns to the competition watchdog if they feel they are not being treated fairly. Additionally, there will be an independent arbitrator to help resolve any disputes. These changes were recommended by former Labor minister Craig Emerson in his interim report released in April.
Treasurer Jim Chalmers spoke about the benefits of these reforms, stating that consumers will ultimately see lower prices as a result. He emphasized that this is all about fairness for both farmers and families, ensuring that the major supermarket chains are held accountable for their actions towards suppliers and customers. Chalmers also made it clear that the government has no intention of breaking up these major supermarket chains.
The main goal of this mandatory code is to promote fair and competitive practices in the food and grocery industry. By implementing strict penalties for those who do not comply, and providing a platform for suppliers to voice their concerns, the government hopes to create a more equitable and efficient supply chain. Overall, these changes aim to benefit both suppliers and consumers, ensuring a more level playing field for everyone involved.
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