Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims has come out on Tuesday, Oct. 20, in defense the Food and Grocery Code of Conduct, popularly known as the "Grocery Code of Conduct," despite accusing some retailers as not getting off to great start in implementing it.
Australian Food News reported that Rod said the ACCC has been confident that the Grocery Code of Conduct can succeed its objectives despite Aldi and Woolworths indicted of breaches when spoke at the Australian Food and Grocery this week.
"We have written to these retailers expressing our concerns. This action, which we made public, as some suppliers urged us to do, was not a signal that the Code faces great difficulties; it was, instead, a signal that we will do what we can to ensure the Code succeeds," Rod stated as part of his speech. "Ensuring suppliers are aware of their rights is crucial to the success of the Code. Our public action was designed to help with this," he continued.
Small Sydney retailer About Life, Aldi, Coles and Woolworths signed on the Grocery Code when it was introduced in March 2015. However, the ACCC openly announced in September 2015 that it was reconnoitering both Aldi and Woolworths and accused them of presenting Grocery Supply Agreements (GSAs) in a way which possibly made them appear non-negotiable.
Aldi stated that it had always supported a strong and sustainable industry involved and that it would respond to the accusations of ACCC in due course. Woolworth, on the other hand, said it was a strong supporter of the Code and that the ACCC has previously contacted them regarding wording in a letter to suppliers which has since been modified. Moreover, the supermarket stated that it was only contacted about supplementary concerns just few hours before the media were notified and were saddened that its previous cooperation was not recognized.
Rod said that he was happy with the AFGC's approach to the Code despite the fact that it is unfortunate some retailers have not got off to a great start in implementing the Grocery Code of Conduct. He also emphasized the organization's work in providing fact sheets and training on the Grocery Code of Conduct to suppliers.
