The ACCC has granted interim authorisation with conditions to Coles Group, Woolworths Group and ALDI to continue their collaboration on soft plastics recycling.
In June 2023, the ACCC granted authorisation that allowed the supermarkets to collaborate through the Soft Plastics Taskforce in processing the soft plastics stockpiles following the suspension of REDcycle’s collection program. That authorisation expired on 22 July 2024.
“While it is disappointing that the majority of the soft plastic stockpiles remain in storage, we appreciate that recycling processors came online in 2024 and only now is there capacity to process the stockpiles,” says ACCC Deputy Chair Mick Keogh.
“It is important to keep the stockpiles out of landfills and this interim authorisation will enable the supermarkets to process the stockpiles with the requisite sense of urgency, without any disruption.”
Interim authorisation will also allow the soft plastics in-store collection pilot program operating in 12 Melbourne stores (five Coles, five Woolworth, two ALDI) to continue.
“Many consumers want to see a return to in-store soft plastics collection and recycling on a wider scale so we are keen to see that this pilot program continues with some urgency and enables future expansion of instore collections,” says Mr Keogh.
This interim authorisation is largely subject to the same reporting conditions as the previous authorisation, requiring the major supermarkets to provide the ACCC with quarterly progress reports and minutes of each meeting of the Soft Plastics Taskforce. It is also a condition that all arrangements must immediately terminate upon the expiry or revocation of the interim authorisation.
“Given the level of consumer concerns it is important that there is continued transparency about what progress of the supermarkets are making in their processing of the soft plastic stockpiles,” says Mr Keogh.
The ACCC’s clear expectation is that the major supermarkets will not prevent or restrict recycling processors from dealing with other parties in any longer-term collection program. The ACCC understands that any long-term solution, whether in the form of an industry-led stewardship scheme or otherwise, is likely to be the subject of a separate, future application for authorisation.
A public consultation process has commenced on the substantive application, with submissions due by 6 August. More information about the application and how to make a submission is available here.