This month the Federal Small Business Minister, Bruce Billson, released the Food and Grocery Code of Conduct. This is a big step forward for Australian small- and medium-sized businesses supplying to the supermarket sector.
The Code will force the supermarkets, particularly Coles and Woolworths, to have proper contracts with suppliers to which the supermarkets must adhere. The Australian Consumer and Competition Commission will monitor the Code.
We have watched Minister Billson on this issue for some time. Fixing this supermarket unfairness problem has been a passion of his. See this YouTube video of Bruce explaining his approach to small business fairness.
In our view, the supermarket ‘fairness’ code would not have happened without Bruce Billson’s patient but persistent determination.
The Code:
- requires retailers and wholesalers to act in good faith;
- sets out the requirements of agreements between retailers or wholesalers and suppliers, including that they be in writing;
- limits when retailers or wholesalers can unilaterally or retrospectively vary an agreement with a supplier, and requires any variation and the reason for it to be in writing; and
- sets out a dispute-resolution process.
Here are the principles of fair contract laws that ICA has been advocating since 2010.
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