The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against Coles Supermarkets alleging Coles engaged in ‘‘unconscionable conduct’’ against some suppliers.May 13, 2014 3:09am
The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against Coles Supermarkets alleging Coles engaged in ‘‘unconscionable conduct’’ against some suppliers.
The ACCC alleges that in 2011, Coles developed a strategy to improve its earnings by obtaining better trading terms from its suppliers.
‘‘It is alleged that one of the ways Coles sought to improve its earnings was through the introduction of ongoing rebates to be paid by its suppliers in connection with the Coles ARC program, based on purported benefits to large and small suppliers that Coles asserted had resulted from changes Coles had made to its supply chain,’’ the ACCC claims.
‘‘Coles’ target was to obtain $16
Coles has replied that the ACCC legal action concerned a detailed supply chain program implemented by Coles more than two years ago as a part of its strategy to develop a more efficient and internationally competitive supply chain.
‘‘The project involved improvements to both supply chain collaboration and efficiencies in logistics.
‘‘It was designed to deliver benefits to Coles, suppliers and customers through lowering costs and improving availability of stock in our stores,’’ the Coles statement said.
‘‘Coles will vigorously defend the allegations made against it by the ACCC.’’
Australian Dairy Farmers president Noel Campbell said the ACCC would allege Coles had engaged in unconscionable conduct towards 200 of its smaller suppliers in breach of the Australian Consumer Law.
‘‘ADF welcomes the ACCC’s decision to take Coles to the Federal Court of Australia for using undue pressure and unfair tactics in negotiating with suppliers,’’ Mr Campbell said.
‘‘Coles’ alleged behaviour towards suppliers includes providing misleading information and taking advantage of their superior bargaining position.
‘‘We very much look forward to the result of the court case, given ADF’s strong track record of advocacy to the ACCC since the introduction of the $1 per litre retail milk price.
‘‘This latest action by the ACCC once again highlights the need for a mandatory code of conduct, including the establishment of an independent supermarket ombudsman with penalties to balance the excessive power of the major retailers.’’
Shepparton East people are being invited to play a role in shaping their community.
Yarrawonga’s Bre Elliott played the most “consistent golf of her life” over three days to win the Fuccillo Kia Championship at Capital Hills by carding a 2-under 69 on the final day.
Heather Donaldson was re-elected president of Tatura Hospital Ladies Auxiliary at the annual general meeting on Thursday, which was attended by 33 people.
BRUCE Mundie claimed top honours in the bridleless freestyle category at the NSW Reining Horse Association State Show in Tamworth over the weekend.
THE 2015 National Blood Donor Week festivities will make the Rochester region Victoria’s new red light district.
Community workshop to consider issues to help form Campaspe digital strategy
Heather Stamp brings a long experience of the Salvation Army to Seymour.
Berrigan Shire Council have approved a development application for six more independent living units to add to Berrigan’s Amaroo Self Care Unit block.
THEY may be a familiar sight across the Heathcote district, but some of the much-loved birds in the region are in decline.
It was a field of emerald at the Soroptimist International of Cobram Barooga’s annual lunch on Friday, where diners enjoyed the craic at the Irish-themed event.
Deniliquin and district boasted two major winners at the Australian Sheep and Wool Expo at Bendigo from July 17 to 19.
Riverine Plains is set to hold the first in its series of farm walks for the 2015 season as part of its research into stubble retained cropping systems.
The News magazines are online - read the high quality magazines in your time. Check in regularly for latest editions.
Riverine Herald's well regarded locally produced magazines. They're now online, so you can read them whenever and wherever you like.
Search for published and unpublished photos from McPherson Media Group newspapers and magazines. All our photos are available to purchase.
Place an advertisement in any one of McPherson Media Group's local newspapers.