Australia Introduces Bill to Penalize Supermarkets

The Australian government has introduced the Treasury Laws Amendment (Fairer for Families and Farmers and Other Measures) Bill 2024, which aims to impose significant fines on major supermarket chains that fail to comply with a new mandatory industry code of conduct. The legislation, which will take effect on April 1, 2025, targets misconduct in supplier dealings and could impose fines up to 10% of a supermarket's annual turnover or A$10 million, whichever is greater. This move follows allegations from politicians and farmers that large grocery chains like Woolworths and Coles misuse their market power, leading to unfair treatment of suppliers and inflated prices for consumers. The bill also empowers the Australian Competition and Consumer Commission (ACCC) to issue infringement notices for breaches of the code. The government emphasizes that these penalties represent the highest corporate fines under any industry code in Australia, aiming to enhance fairness in the grocery sector. The new code has received support from several major retailers, although some opposition voices express skepticism about its effectiveness.