Australia’s largest supermarkets and grocery wholesalers now must follow a new mandatory Food and Grocery Code of Conduct, enforced by the ACCC.
The code sets clear rules on how businesses deal with their suppliers, aiming to ensure fair, transparent, and ethical practices across the grocery sector. It applies to all retailers and wholesalers who earned over $5 billion in the previous financial year.
This code sets clear rules for how retailers deal with suppliers. Key requirements include:
- Have a written supply agreement in place
- Act lawfully and in good faith
- Ensure suppliers are not penalised for asserting their rights under the code
Before this update, compliance with the code was voluntary. Now, it’s compulsory—with serious consequences for those who don’t comply.
To enforce the rules, the ACCC has the power to issue infringement notices and take court action. Penalties for breaches are significant—up to:
- $10 million per breach, or
- Three times the benefit gained, or
- 10% of a company’s annual turnover
Suppliers are now automatically protected under the code, and anyone can now report breaches anonymously through the ACCC’s new online reporting portal.
For more information on the updated code, read here: Food and Grocery Code of Conduct | ACCC
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