Woolworths accused of bullying suppliers into paying millions for Cheap Cheap campaign
Woolworths has been accused of bullying suppliers into paying millions of dollars to fund a discount war, prompting the competition watchdog to examine whether the supermarket giant is in breach of competition and consumer laws.
Just days after Coles requested to settle a similar case with the Australian Consumer and Competition Commission, and paid a $10 million fine, Fairfax Media has obtained emails that reveal rival Woolworths requested extra payments from suppliers by the end of the month.
Only suppliers who have had their products discounted by Woolworths as part of its new "Cheap Cheap" marketing campaign have been hit with demands for extra cash payments, which will fund "the gap between sales and profit growth" on discounted lines. Sydney Morning Herald – Read more…