Australia’s grocer chains face billion-dollar fines over supplier treatment
Al Jazeera
Violators of industry code of conduct to be subject to fines of up to 10 percent of annual turnover.
Australia will impose hefty fines on supermarket chains found to be abusing their bargaining power over suppliers.
Under the rules announced by the government on Monday, supermarket chains earning more than 5 billion Australian dollars ($3.3bn) in annual revenue will be required to comply with a previously voluntary industry code of conduct.
The changes will cover Woolworths, Coles, Aldi and Metcash, which together make up more than 80 percent of the market, and could expand to retailers such as Costco as their revenues grow.
Breaches of the code will be subject to fines of up to 10 percent of annual turnover, leaving retailers liable to pay billions of dollars in penalties.
The government said it would also establish an anonymous supplier and whistle‑blower complaints mechanism within the Australian Competition and Consumer Commission.
