Mandatory Food and Grocery Code, now open for comment

The Australian Government has released an exposure draft of the new mandatory Food and Grocery Code and an exposure draft of amendments to the Competition and Consumer Act 2010 for consultation.

Once implemented, any breaches of the Code could see Aldi, Coles, Woolworths and Metcash subject to multimillion‑dollar penalties.

The Code is designed to increase protections for suppliers by introducing strengthened dispute resolution arrangements and new obligations to protect suppliers from retribution, which will be complemented by the creation of an anonymous supplier and whistleblower complaints pathway through the Australian Competition and Consumer Commission (ACCC).

Expected to commence on 1 April 2025, the new Code implements the recommendations of Dr Craig Emerson’s independent review of the code in full. 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.

The amendments to the Competition and Consumer Act 2010 will introduce higher maximum penalties for breaches of the Code, as well as higher infringement notice penalties for alleged breaches of the Food and Grocery Code and other industry codes.

Legislation will be introduced into parliament later this year.

Submissions on the exposure draft of the mandatory Food and Grocery Code are open until 18 October 2024.

Submissions on the exposure draft of amendments to the Competition and Consumer Act 2010 are open until 4 October 2024.

Image credit: iStock.com/Nodar Chernishev