ACCC takes action against Coles over alleged treatment of suppliers

The Australian Competition and Consumer Commission has this morning launched legal proceedings against Coles over its alleged treatment of suppliers, in an action that will send shockwaves through the supermarket and grocery sectors.
The competition watchdog alleged that the nation’s second biggest supermarket chain engaged in unconscionable conduct in relation to its Active Retail Collaboration (ARC) program, in contravention of the Australian Consumer Law.

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The ACCC has alleged 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.
Coles’ target, the ACCC claims, was to obtain $16 million in ARC rebates from smaller suppliers.Sydney Morning Herald – Read more…