ACCC reminds suppliers of their rights

“Reports received by the Australian Competition and Consumer Commission suggest that a majority of suppliers have chosen to enter code compliant grocery supply agreements (GSAs) with the supermarkets,” ACCC chairman, Rod Sims, said.

“It is important to recognise that from 1 July 2016, suppliers of Aldi, Coles and Woolworths who had not yet signed new GSAs still have the default protections provided by the Code, which overlay their existing terms.”

According to the competition watchdog, around 1500 suppliers have undertaken training on the code. The Australian Food and Grocery Council recently publicised the results of a survey that revealed a number ofcode-related issues being raised by suppliers including;

• requests to suppliers for payments to make up shortfalls in supermarket profits
• specificity of criteria for range reviews and delisting of products. Under the Code, supermarkets must notify suppliers of their product ranging and space allocation principles
• payment terms.

“The issue of late payment of suppliers’ invoices by supermarkets has recently caused wider public comment. The ACCC is also aware that some GSAs define a 30-day payment term, for example, to mean 45 days,” Mr Sims said.

“The ACCC continues to monitor compliance with the code and encourages suppliers who have concerns about their dealings with the supermarkets to raise them with the ACCC.”

“We have shown that we can protect supplier confidentiality,” Mr Sims said.

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