Review Calls for Mandatory Supermarket Code

by | Apr 11, 2024 | Australia, News

An interim report recommending a mandatory code of conduct for supermarkets with hefty financial penalties for breaches has been delivered to the Australian Government.      

The review recommended current voluntary guidelines be made into legally-binding obligations. Major breaches of the code would incur fines of up to $10m, 10% of annual turnover or three times the benefit gained from major systemic breaches of the mandatory code. The mandatory code’s proposed penalties require updates to the Competition and Consumer Act, which will enable the Australian Competition and Consumer Commission to issue public warnings, seek injunctions, initiate court proceeding and accept court-enforceable undertakings. The Review did not recommend forced divesture.  

The National Farmers Federation has welcomed the interim report’s recommendations with president David Jochinke saying improved transparency and accountability measures would help farmers under pressure from supermarkets.