In a landmark legal confrontation that could reshape Australia's grocery sector, a leading fresh produce supplier has launched unprecedented action against the country's supermarket duopoly.
The Allegations
Fresh produce supplier A Fresh Approach, operating across multiple states, has filed suit alleging "systematic unconscionable conduct" by major retailers. The company claims supermarkets have been engaging in practices that directly violate the Food and Grocery Code of Conduct, specifically designed to protect suppliers from unfair treatment.
ACCC's Groundbreaking Intervention
The Australian Competition and Consumer Commission (ACCC) has taken the extraordinary step of granting the supplier the right to pursue Federal Court action. This marks a significant escalation in regulatory scrutiny of Australia's concentrated supermarket sector.
"This case represents a watershed moment for supplier-retailer relationships in Australia," noted industry analysts. "The ACCC's endorsement signals a new era of enforcement."
Industry-Wide Implications
The litigation comes amid growing concerns about supermarket power in Australia, where two chains control approximately two-thirds of the market. Key issues alleged include:
- Unreasonable payment terms and sudden contract variations
- Improper use of confidential supplier information
- Failure to act in good faith during negotiations
- Threats to remove products from shelves without justification
Broader Context
This legal action coincides with multiple government inquiries into supermarket pricing practices amid Australia's cost-of-living crisis. Both Coles and Woolworths face separate ACCC investigations into their treatment of suppliers and pricing strategies.
The outcome of this case could establish critical precedents for how Australia's grocery code is enforced and potentially lead to substantial financial penalties for proven breaches.
