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Aussie supermarket prosecuted over supplier issues

Clayton Cosgrove
Commerce Spokesperson

5 May 2014

Aussie supermarket prosecuted over supplier issues

Link to ACCC investigation story here.

Australian supermarket Coles is going to be prosecuted by the Australian Consumer and Commerce Commission for unconscionable conduct in dealing with suppliers, showing the issue is rife internationally, says Labour’s Commerce spokesperson Clayton Cosgrove.

“The ACCC alleges that Coles used undue pressure and unfair tactics when negotiating with suppliers, provided misleading information and took advantage of its superior bargaining position.

“These actions were allegedly directed towards more than 200 small suppliers.

“The behaviour of supermarkets towards suppliers is an issue of international concern. The allegations and prosecution of Coles shows that bullying and unfair tactics occur internationally.

“The Commerce Commission in New Zealand is taking this seriously with seven investigators and is issuing section 98 subpoenas to compel evidence and people.

“We have been working on a proposal to address these issues, one that is tailor-made to New Zealand circumstances, not just Xeroxed off from another jurisdiction.

“There are now investigations on both sides of the Tasman. This issue was raised by Labour while the Government, which knew about it, sat idly by and did nothing.

“This is an issue that must be thought through very carefully as there are hundreds of millions of dollars at stake as well as thousands of jobs,” says Clayton Cosgrove.

ENDS

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