Supermarkets need to improve the way they notify suppliers when delisting their products to avoid breaching the Food and Grocery Code of Conduct, ACCC Chairman Rod Sims said today at the Australian Food and Grocery Council’s forum in Canberra.
Australian Competition and Consumer Commission Chairman Rod Sims provides an update on grocery issues at the Australian Food & Grocery Council Leaders Forum in Canberra. He talks about the Food and Grocery Code of Conduct, misleading health claims, recent work in agriculture and the ACCC's role in assisting with competition issues and free trade agreements.
At the AFR Retail Summit in Melbourne, ACCC Chairman Rod Sims discusses three related themes around competition and retail; first, removing restrictions, and using the competition laws to good effect; second, addressing misuse of bargaining power in the supply chain; and third, how consumer protection plays an important role in creating a level playing field and underpinning competition and our market economy.
All suppliers to Coles, Woolworths and Aldi now have the full benefit of the Food and Grocery Code of Conduct (Code).
“Reports received by the Australian Competition and Consumer Commission suggest that a majority of suppliers have chosen to enter Code compliant grocery supply agreements (GSAs) with the supermarkets. It is important to recognise that from 1 July 2016, suppliers of Aldi, Coles and Woolworths who had not yet signed new GSAs still have the default protections provided by the Code, which overlay their existing terms,” ACCC Chairman Rod Sims said.
Following concerns raised by the Australian Competition and Consumer Commission, the major supermarkets have taken steps to clarify the implementation of the Food and Grocery Code of Conduct (Code) with their suppliers.
Woolworths and Aldi have written to their suppliers clarifying that suppliers are able to negotiate the terms of their Grocery Supply Agreements (GSAs). They have also clarified the effect of the Code on their GSAs and the circumstances in which certain payments may arise.
The Australian Competition and Consumer Commission will do what it can to ensure the Food and Grocery Code of Conduct succeeds, Chairman Rod Sims said today at an industry forum hosted by the Australian Food and Grocery Council (AFGC) in Canberra.
“We are confident the Code can succeed in achieving its objectives. It can redress the imbalance in bargaining power that often exists between suppliers and larger grocery retailers by prohibiting certain types of unfair conduct, and by requiring retailers to deal with suppliers in good faith at all times,” Mr Sims said.
Addressing an industry forum hosted by the Australian Food and Grocery Council in Canberra, Chairman Rod Sims discusses the Food and Grocery Code of Conduct, the ACCC's increased focus on the agricultural sector, proposed changes to country of origin labelling and truth in advertising.
The Australian Competition and Consumer Commission is reminding grocery suppliers about new protections they have under the Food & Grocery Code of Conduct, which has rules about grocery supply agreements, payments, termination of agreements, dispute resolution and a range of other matters.
The voluntary code complements existing protections under the Competition and Consumer Act 2010, including the unconscionable conduct provisions.