The food and grocery code will become mandatory for Australia's largest supermarkets and grocery wholesalers starting 1 April 2025. The code outlines the framework for negotiations and contracts with suppliers, mandating written agreements and lawful, good-faith conduct. Suppliers are protected against retribution for exercising their rights under the code.
The mandate applies to retailers and wholesalers with over $5 billion in revenue from supermarket or grocery wholesaling in the previous financial year. Suppliers to these entities are automatically covered under the code.
The Australian Competition and Consumer Commission (ACCC) will have the authority to issue infringement notices and pursue court action against violations. Maximum penalties for severe breaches will be the greater of $10 million, three times the benefit derived, or 10% of the company's turnover from the preceding 12 months.
An online portal has been launched by the ACCC for the anonymous reporting of potential code violations. Businesses may also report issues through the ACCC's Infocentre.
Source: Berries Australia