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The biggest supermarkets face billions of dollars in fines for mistreating suppliers under a new mandatory code of conduct due to be confirmed by the federal government today.
The new food and grocery code of conduct will apply to supermarkets with annual revenue of $5 billion. They will face fines of up to $10 million, or 10 percent of revenue, if they are found to have mistreated suppliers.
Under the reforms, there will be a new anonymous complaints process so that these suppliers can turn to the competition watchdog if they feel they have not been treated fairly, as well as a new independent arbitrator.
These were the main recommendations of a review led by former Labor Secretary Craig Emerson, which delivered its interim report in April.
Treasurer Jim Chalmers said Today this morning, shoppers would see lower prices as a result of changes the federal government was trying to enact into law as soon as possible.
“It’s all about treating farmers and families fairly. It is about ensuring that the big supermarket chains do right by their suppliers and also by their customers.
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“And it’s all about making sure that if we have supply chains that are fairer and supermarkets that are more competitive.”
“It’s really about making sure that the food and grocery code is enforced, that there are big penalties for people who do the wrong thing, and that there are better ways for people to make complaints and resolve disputes.”
Chalmers confirmed that the government has no plans to break up the big supermarket chains.
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