Major supermarkets are facing potential fines worth billions of dollars for mistreating suppliers under a new mandatory code of conduct set to be unveiled by the federal government. The new food and grocery code will impact supermarkets with annual revenue of $5 billion, subjecting them to fines up to $10 million or 10% of their revenue if they are found to be mistreating suppliers.
The reforms will introduce an anonymous complaints process for suppliers to report unfair treatment, as well as the involvement of an independent arbitrator. These recommendations were made following a review led by former Labor minister Craig Emerson in April.
Treasurer Jim Chalmers stated that these changes would lead to lower prices for consumers and emphasized the importance of ensuring fair treatment for suppliers and customers in the supermarket industry.
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