<?xml version="1.0" encoding="ISO-8859-1"?> <docID>334105</docID> <postdate>2024-11-27 09:56:16</postdate> <headline>‘Dodgy’ supermarkets to pay the price under changes</headline> <body><p><img class=" wp-image-332442" src="https://citynews.com.au/wp-content/uploads/2024/11/IMG_7870-resized-e1730690736655.jpg" alt="" width="801" height="534" /></p> <caption>Proposed legislation aims to punish supermarkets for breaches of the grocery code of conduct.</caption> <p><span class="kicker-line">By <strong>Tess Ikonomou</strong> in Canberra</span></p> <p><strong>Harsh penalties including fines of up to $10 million will be put forward under a crackdown on "dodgy" supermarkets.</strong></p> <p>As Australians deal with cost-of-living pressures, the Albanese government will on Wednesday introduce legislation that would punish supermarkets for breaches of the Food and Grocery Code of Conduct.</p> <p>The code, which governs the relationship between supermarkets and suppliers, is voluntary at present but will become mandatory from April 2025.</p> <p>The government's proposal provides maximum fines under the code as the greater of $10 million, three times the benefit gained from the breach, or 10 per cent of turnover in the previous 12 months.</p> <p>The Australian Competition and Consumer Commission would also be given extra powers to issue infringement notices to supermarkets that breach the code.</p> <p>Prime Minister Anthony Albanese said the government had put supermarkets on notice.</p> <p>"Dodgy behaviour that costs Australians will not be tolerated," he said.</p> <p>"We want to see a fair deal for Australian families at the checkout, and a fair deal for our farmers."</p> <p>Treasurer Jim Chalmers said Labor knew cost-of-living pressures were hitting Australians hardest at the checkout.</p> <p>"Our new mandatory code has strong penalties that tell the supermarkets we're serious about getting a fair go for families and farmers," he said.</p> <p>The government is hoping for an interest rate cut by the Reserve Bank before the a federal election, which is due to be held by May 2025.</p> <p>The coalition has routinely accused Labor of being out of touch, or not doing enough to bring down inflation and cost of living pressures.</p> <p>The government also has targeted the practice of "shrinkflation" – when a product is sold for the same price though its size has been reduced.</p> <p>Coles and Woolworths make up almost 70 per cent of supermarket retail sales.</p> <p>The two chains have previously said they remained committed to keeping prices low, and that pack and serving sizes were up to individual manufacturers.</p> <p>Australia's consumer watchdog announced in September it was taking legal action against Coles and Woolworths for allegedly misleading customers.</p> </body>