ACCC proposes to grant authorisation to Retailer Alert Scheme

The Australian Competition and Consumer Commission has issued a draft determination proposing to grant conditional authorisation* to a proposed Retailer Alert Scheme, which is designed to deal with inappropriately named or packaged alcohol products.

The Retailer Alert Scheme provides a system for the removal of inappropriately named or packed alcohol products from the market. If a complaint about the name or packaging of an alcohol beverage is made, and the product is found not to comply with the Alcohol Beverages Advertising (and Packaging) Code, then a Retailer Alert will be issued.

Retailers who are signatories to the code have agreed to abide by a request in a Retailer Alert that they not place further orders for non-compliant stock. Suppliers who are signatories to the code, and whose products are the subject of a Retailer Alert, have agreed to cease supplying non-compliant stock to the market.

"The ACCC is satisfied that the proposed arrangements are likely to result in a benefit to the public," ACCC Chairman, Mr Graeme Samuel, said today. "The ACCC considers that, to the extent that product names and packaging contribute to unsafe or underage drinking, the Retailer Alert Scheme will provide a benefit to the public by establishing a national system for the removal of inappropriately named or packaged products."

The ACCC is proposing to grant authorisation subject to three conditions, in order to ensure that the proposed arrangements are likely to result in a net public benefit.

"The first and second conditions are designed to ensure that the Retailer Alert Scheme applies to all alcohol products regardless of when they first entered the market, and to reduce the amount of time during which the product the subject of a Retailer Alert may continue to be sold," Mr Samuel said.

The third condition requires the applicants for authorisation to provide the ACCC with a report, by no later than 31 March 2011, regarding the results of an independent review to be conducted into the effectiveness of the Retailer Alert Scheme.

The ACCC's draft determination will be available from the ACCC website.

The ACCC is seeking submissions from interested parties in relation to its draft determination. Submissions can be made to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, GPO Box 3131, Canberra, ACT, 2601. Submissions can also be lodged by fax on (02) 6243 1121 or by email to: adjudication@accc.gov.au.

Background

* Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.