Fresh produce, fresh policies: Unpacking the latest amendments to the Food and Grocery Code of Conduct

Effective 1 April 2025, the amendments to the Food and Grocery Code of Conduct (Code) have come into effect. The Code is also now mandatory for Australia’s largest supermarkets and grocery wholesalers.

What is the Food and Grocery Code of Conduct?

Prescribed under the Competition and Consumer Act, the Code acts as a mechanism to regulate and address concerns regarding unequal bargaining power between supermarket retailers and their suppliers.

The Code establishes guidelines for supermarkets and wholesalers in their negotiations and contracts with their suppliers. It requires them to have written supply agreements and to act lawfully and in good faith towards suppliers. The Code includes safeguards for suppliers from retribution if they exercise their rights under the Code.

What’s changed in the Food and Grocery Code of Conduct?

While the Code was previously voluntary and only applicable to supermarkets who elected to be bound by it, it is now mandatory and will apply to supermarket retailers or wholesalers with revenue exceeding $5 billion each financial year. Currently, this means Coles, Woolworths, ALDI and Metcash.

Consequently, suppliers to these supermarkets will now automatically be protected by the Code and should no longer be fearful or threats  of their agreements being unfairly withdrawn.

Further, to enhance and ensure compliance, civil penalties now apply for large supermarkets that violate the Code. The Australian Competition and Consumer Commission (ACCC) will now be able to issue infringement notices and take court action seeking penalties against businesses that contravene the Code. Penalties for the most harmful contraventions can be the greatest of:

• $10 million;
• 3 times the value of the benefit that is derived from the contravention; or
• if (b) cannot be determined, 10% of turnover during the 12 months prior.

The Code also seeks to strengthen dispute-resolution arrangements and improve outcomes for suppliers of fresh produce.

Suppliers, listen up!

The ACCC has also launched a new online portal for people, like suppliers, to make anonymous reports regarding breaches of the Code. Suppliers can also continue to make report through the ACCC’s Infocentre.

If you would like to have a chat about the Food and Grocery Code of Conduct and what the changes will mean for you or your business, please reach out to our experienced Trade Team.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.