Monday, October 14, 2024

Mandatory Food and Grocery Code: exposure draft regulations

The Australian Government has released the exposure draft of the mandatory food and grocery code, as well as the amendments to legislation that will be introduce into the parliament this year.

The draft regulations make amendments to the Food and Grocery Code of Conduct to implement the government response to Dr Craig Emerson’s independent review of the code. These amendments include:

  • making the code mandatory
  • strengthening dispute resolution arrangements
  • addressing supplier fears of retribution
  • introducing penalties for breaching the code
  • improving outcomes for suppliers of fresh produce.

Amendments have also been made to update and clarify various provisions of the code.

“We’re launching the exposure draft so that we can ensure that there’s full transparency about where the Government intends to head,” said Prime Minister Anthony Albanese.

“Of course, previously there’s been a voluntary code. Quite clearly, that has not been good enough and that’s why we commissioned former Minister Craig Emerson to make recommendations to the Government and this is a fulfillment of those recommendations.”

The release of the draft recommendations come as the ACCC alleges that Woolworths and Coles temporarily increased the prices of 266 Woolworths’ products and 245 Coles products for short periods of time before placing them on ‘prices dropped’ and ‘down down’ promotions.

Mr Albonese says the allegations are serious and, if true, completely unacceptable.

“This is not the Australian spirit. Customers don’t deserve to be treated as fools by the supermarkets. They deserve much, much better than that,” he said.

The legislation that the Albonese government seeks to introduce would mean that Coles and Woolworths (and also ALDI and Metcash) would face multi-million dollar penalties for serious breaches.

“My government wants to make sure that Australian consumers get a fair go,” Mr Albonese said. “When families are doing it tough, they need a government that’s on their side. But they also need a tough consumer cop on the beat.”

Minister for Finance, Katy Gallagher says the draft regulation covers off issues that have been raised through the various reviews, including around penalties and also around retribution.

“This is just one element of a larger response that we’ve put in place, based on the fact that groceries and doing your shopping is really placing pressure on household budgets,” she said.

“We want to make sure that shoppers and families around the country get a better deal than they’ve been getting.”

Further details on the new regulations can be found here.

Consultation will stay open until the 18th of October.

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