Australia introduces bill to penalize supermarkets for mistreating suppliers, imposing fines of up to 10%

From Investing.com: 2024-11-27 02:26:25

The Australian government has introduced a bill to penalize supermarkets for mistreating suppliers. Woolworths, Coles, ALDI, and Metcash must comply with a code of conduct starting April 2023. Fines of up to 10% of annual turnover will be imposed for breaches. Inflation has impacted the Labor government’s approval ratings ahead of the upcoming election.

The supermarket sector in Australia is highly concentrated, with Woolworths and Coles dominating sales. Calls to break up big chains were rejected. Coles, Metcash, and ALDI support the mandatory code, while Woolworths referred comments to the Australian Retailers Association, which also backs the code. Concerns have been raised about penalties exceeding recommendations.

Woolworths reported A$48 billion in food sales, Coles A$37 billion, and Metcash A$10 billion. ALDI’s earnings are undisclosed. Assistant Treasury Minister Andrew Leigh stated the crackdown on misconduct will benefit shoppers, farmers, and suppliers. The bill aims to promote fair competition and transparency in the supermarket industry.



Read more at Investing.com: Australia introduces bill imposing big fines for supermarket misconduct By Reuters