ACCC allows health food stores in the ACT to collectively bargain
The Australian Competition and Consumer Commission has issued a final decision authorising* current and future members of the ACT Health Food Co-operative** to collectively bargain with suppliers of health food products, ACCC Chairman, Mr Graeme Samuel, said today.
"Products to be the subject of collective negotiations include vitamins, dried fruits and nuts, protein and other supplements, organic fruit and vegetables, other organic food stuffs and essential oils.
"The ACCC considers the collective bargaining arrangement may enable members of the co operative to negotiate bulk discounts with suppliers of health food products. This may result in some public benefit.
"The ACCC considers that the possible anti-competitive effect of the collective bargaining arrangement is limited given the nature of the proposed arrangement, the structure of the industry and the limited size of the collective bargaining group.
"Member health food stores will not be restricted to purchasing products through the co operative. Further, health food suppliers can choose not to participate in collective negotiations with the co-operative.
"The ACCC notes that member health food stores of the co-operative will continue to individually set retail prices in respect of the goods subject to collective negotiations.
"The ACCC has issued this final decision in just over two months since receiving the co-operative's application for authorisation. This again demonstrates the ACCC's commitment to dealing with collective bargaining matters quickly," Mr Samuel said.
A copy of the final decision will be available on the ACCC's website.
*Authorisation provides protection from court action for conduct or arrangements that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Authorisation is granted where the ACCC is satisfied that the benefit to the public from the conduct outweighs any public detriment. A party to whom authorisation had been granted may also apply to the ACCC for a minor variation of that authorisation.
**There are currently 12 health food stores that are members of the co-operative.
