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Enforcement of the code
The ACCC is responsible for enforcing the Food and Grocery Code of Conduct.
We are always interested to hear from suppliers about their experiences under the code, but we are not a dispute resolution body. If we think someone has breached the code we can investigate and may take enforcement action.
We have a range of options to make sure the code is complied with. We consider several factors when deciding which options to use. For more information, see our Compliance and Enforcement Policy.
Enforcement options include:
- administrative resolutions, such as the party in breach agreeing to stop the behaviour
- court enforceable undertakings under section 87B of the Competition and Consumer Act 2010
- infringement notices
- court action.
If you have suffered loss or damage because of a breach of the code, you may be able to take court action seeking other remedies such as damages.
Compliance checks
We conduct regular compliance checks to make sure large grocery businesses are complying with the code.
We can require large grocery businesses to give us certain information and documents. This helps us understand if:
- the code is being complied with
- records are being kept correctly
- there are compliance issues across the industry that we need to focus on.
See Industry code compliance checks for information about the actions we take.
Additional supplier protections under the law
Suppliers and other small businesses also have extra protections under competition and consumer law.
Large grocery businesses must not mislead or deceive their suppliers
It is illegal for a business to behave in a way that misleads or deceives, or is likely to mislead or deceive, consumers or other businesses. This applies even if:
- the business did not intend to mislead or deceive anyone
- no one has suffered any loss or damage.
Find out more about false or misleading claims and what a business can and can’t do.
Small businesses have protections from unfair contract terms
The Australian Consumer Law protects small businesses from unfair terms in standard form contracts.
The ACCC doesn’t decide if a term is unfair. Only a court or tribunal can decide.
Find out more about unfair contract terms.
Businesses must not engage in unconscionable conduct
Businesses must not engage in unconscionable conduct when dealing with other businesses or their customers, under the Australian Consumer Law. This means large grocery businesses must also not engage in unconscionable conduct towards their suppliers.
Find out more about unfair business practices and what a business can and can’t do.
Example of threats against suppliers
The ACCC took action against Coles Supermarkets Australia Pty Ltd for making threats of commercial consequences to certain suppliers to get them to agree to a rebate program. The Court found that the misconduct of Coles was serious, deliberate, repeated and not done in good conscience.
Anti-competitive behaviour is against the law
Certain business practices that limit or prevent competition are against the law. The following are examples of these practices.
Exclusive dealing
Broadly speaking, exclusive dealing occurs when one person trading with another imposes some restrictions on the other’s freedom to choose with whom, in what, or where they deal. The first person might want to restrict the second person from selling their product to anyone else for example. Exclusive dealing is against the law only when it substantially lessens competition.
Anti-competitive conduct
Competition and consumer law bans contracts, arrangements, understandings or concerted practices that have the purpose, effect or likely effect of substantially lessening competition in a market. This applies even if that behaviour does not meet the stricter definitions of other anti-competitive conduct such as cartels.
See Competition and anti-competitive behaviour for more information about what businesses can and can’t do.
Misuse of market power
A business with a large degree of power in a market is not allowed to engage in behaviour that has the purpose, effect or likely effect of substantially lessening competition in a market. It is not illegal to have, or to seek to get, market power by offering the best products and services.