The Australian government is backing significant penalties for major supermarkets found guilty of unfair treatment of suppliers. Currently, the Food and Grocery Code of Conduct, which regulates the interactions between supermarkets and suppliers, operates on a voluntary basis. The government’s support for stiffer penalties comes in response to an interim review by former Labor minister and economist Craig Emerson. The review recommended imposing fines of up to 10 per cent of annual revenue on supermarket corporations that mistreat their suppliers. Treasurer Jim Chalmers confirmed the government’s intent to pursue this proposed multi-million-dollar penalty regime for the supermarket sector, particularly targeting grocers such as Coles and Woolworths if they are found to engage in anti-competitive behavior.
The move reflects the government’s determination to enhance the regulation of the food and grocery industry, with an emphasis on protecting suppliers against unfair and exploitative practices. Mr. Chalmers highlighted the need to make the Food and Grocery Code of Conduct mandatory, introduce substantial penalties for those engaging in harmful practices, and enhance dispute resolution mechanisms to shield farmers and suppliers from being exploited.
In another development in the Australian automotive sector, Honda has issued a recall of 52,000 vehicles due to a fuel pump fault. The recall affects a substantial number of Honda vehicles in Australia and underscores the importance of vehicle safety and compliance with industry standards. The news serves as a timely reminder for consumers and automotive enthusiasts to stay informed about vehicle recalls and to take appropriate action to mitigate potential risks.
