RE: Big-box Retailer Price Setting Inquiry

Under the CCA and ACL, the ACCC has the power to examine the practices of large format retailers and where they find retailers are engaged in illegal practices or malicious behaviour, it can apply to the courts to place restrictions on the retailer and impose fines. [...] The Code was designed with a focus on the unique commercial, regulatory and operating environment of the food and grocery sector, particularly its supply chains, the perishable nature of many of the goods stocked and relationship between the supermarkets and their suppliers. [...] Applying the food and grocery Code to the large format retail sector would only lead to confusion and greatly increase the regulatory burden in the sector. [...] For land purchased in the early-stage development of new housing estates on the urban fringe, due to the large footprint of the store, the retailer may need to wait until the population around it has grown to a point that it can provide the customer traffic to support a large format store. [...] We look forward to further consultation on the role of ‘big box’ retailers and large format retailers in price setting, to ensure the recommendations of the Committee are fair, workable for the retailer and their customers and suppliers, and are not just another regulatory burden being placed on retailers.