Code of Conduct on Major Supermarkets to Include ALDI and Metcash

The Australian government is set to enforce a mandatory Food and Grocery Code of Conduct for major supermarkets with annual revenues exceeding $5 billion, including Woolworths, Coles, ALDI, and Metcash. This move aims to curb anti-competitive practices and unfair treatment of suppliers, particularly small farmers. Violators could face fines up to 10% of their annual turnover or $10 million, whichever is greater. The government will implement an anonymous complaints mechanism and independent arbitration to protect suppliers from retaliation. This initiative follows recommendations from a review by former competition minister Craig Emerson, which highlighted significant power imbalances between supermarkets and their suppliers. The changes are expected to promote fairer pricing and more competitive practices in the grocery sector.