The ACCC has granted interim authorisation with conditions to the major supermarkets Coles Group, Woolworths Group and ALDI Stores, to continue their collaboration to recycle stockpiled soft plastics and continue with the pilot in-store collection program.
In June 2023, the ACCC granted authorisation that allowed the supermarkets to collaborate through the Soft Plastics Taskforce in processing the soft plastics stockpiles following the suspension of REDcycle’s collection program. That authorisation is due to expire on 22 July 2024.
“While it is disappointing that the majority of the soft plastic stockpiles remain in storage, we appreciate that recycling processors came online in 2024 and only now is there capacity to process the stockpiles,’ ACCC Deputy Chair Mick Keogh said.
“It is important to keep the stockpiles out of landfills and this interim authorisation will enable the supermarkets to process the stockpiles with the requisite sense of urgency, without any disruption,” Mr Keogh said.
Interim authorisation will also allow the soft plastics instore collection pilot program operating in 12 Melbourne stores (5 Coles, 5 Woolworth, 2 Aldi) to continue.
“Many consumers want to see a return to instore soft plastics collection and recycling on a wider scale so we are keen to see that this pilot program continues with some urgency and enables future expansion of instore collections,” Mr Keogh said.
This interim authorisation is largely subject to the same reporting conditions as the previous authorisation, requiring the major supermarkets to provide the ACCC with quarterly progress reports and minutes of each meeting of the Soft Plastics Taskforce. It is also a condition that all arrangements must immediately terminate upon the expiry or revocation of the interim authorisation.
“Given the level of consumer concerns it is important that there is continued transparency about what progress of the supermarkets are making in their processing of the soft plastic stockpiles,” Mr Keogh said.
The ACCC’s clear expectation is that the major supermarkets will not prevent or restrict recycling processors from dealing with other parties in any longer-term collection program. The ACCC understands that any long-term solution, whether in the form of an industry-led stewardship scheme or otherwise, is likely to be the subject of a separate, future application for authorisation.
A public consultation process has commenced on the substantive application, with submissions due by 6 August 2024.
More information about the application and how to make a submission is available here on the ACCC’s website.
Note to editors
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Section 91 of the CCA allows the ACCC to grant interim authorisation when it considers it is appropriate and in the public benefit. This allows the parties to engage in proposed conduct while the ACCC is considering the merits of the substantive CCA authorisation application.
The ACCC may review a decision on interim authorisation at any time, including in response to feedback raised following interim authorisation.
Background
REDcycle was an industry-led return-to-store soft plastics collection and recycling program developed and operated by RG Programs and Services Pty Ltd. The major supermarkets partnered with REDcycle to provide collection points for consumers to return their soft plastics instore for collection by REDcycle for processing into durable recycled plastic products.
On 8 November 2022, REDcycle announced the indefinite suspension of its soft plastics collection program as its recycling partners had temporarily stopped accepting and processing soft plastics. Following REDcycle’s announcement, Coles and Woolworths each announced the suspension of soft plastic collections from their stores until further notice.
The Participants sought authorisation from the ACCC in November 2022 to enable them to collaborate to consider and develop solutions for the recycling of soft plastics. The ACCC’s interim authorisation on 25 November 2022, led to the establishment of the Soft Plastics Taskforce, chaired by the Department of Climate Change, Energy, the Environment and Water.
On 26 February 2023, the supermarkets assumed responsibility for the REDcycle stockpiles. It was later reported that approximately 11,000 tonnes of soft plastics had been stockpiled in over 44 locations.
REDcycle’s parent company was declared insolvent on 27 February 2023 with a liquidator appointed.
The ACCC granted authorisation on 30 June 2023 for a period of 12 months to allow the supermarkets to collaborate with the Soft Plastics Task force to process the soft plastic stockpiles.