Supermarkets could face billions in fines for grocery code breaches as Labor commits to reforms

Woolworths, Coles, ALDI and IGA owner Metcash are signatories to Australia’s voluntary food and grocery code of conduct, but it could soon become mandatory, along with tough new penalties.Woolworths, Coles, ALDI and IGA owner Metcash are signatories to Australia’s voluntary food and grocery code of conduct, but it could soon become mandatory, along with tough new penalties.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup In the final report, to be released on Monday, Emerson said larger penalties should apply to breaches of: “obligations on supermarkets to deal with suppliers lawfully and in good faith; have and retain written grocery supply agreements; train staff; and keep records” and those that did not “address retribution” against suppliers.

“Suppliers’ fear of retribution has been a major obstacle to the pursuit of their rights under the code,” Emerson said.The report said suppliers feared that complaints or reasonably rejecting requests from a supermarket could result in “being offered less-advantageous trading terms, reduced volumes in orders, poorer shelf location, limits on distribution across stores and having products delisted altogether”.

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