The Food and Grocery Code of Conduct is now mandatory for Australia’s largest supermarkets and grocery wholesalers.
The code sets the rules for how supermarkets and wholesalers negotiate and contract with their suppliers. It requires them to have written supply agreements in place, act lawfully and in good faith towards their suppliers, and ensure suppliers do not face retribution for exercising their rights under the code. Large supermarkets and wholesalers now face significant penalties for contraventions of the updated code.
The changes, which commenced on 1 April 2025, make the code mandatory for all retailers and wholesalers that earned over $5 billion from their supermarket or grocery wholesaling businesses in the previous financial year. Suppliers to those retailers and wholesalers are automatically protected by the code.
Guidance on the updated code is available at: Food and Grocery Code of Conduct.
The ACCC will now be able to issue infringement notices and take court action seeking penalties against businesses that contravene the code. For the most harmful contraventions, this includes a maximum penalty per contravention that will be the greater of $10 million, or 3 times the value of the benefit derived, or, if that value cannot be determined, 10% of the company’s turnover during the preceding 12 months.
What you need to do
For large grocery businesses:
- Changes to the code have introduced new obligations for large grocery businesses. These businesses should review the updated code and the ACCC guidance to understand their obligations and ensure compliance.
For suppliers:
- Suppliers should review the updated code and the ACCC guidance and understand how they can enforce their rights.
Make a report to the ACCC
You can continue to make reports about potential contraventions of the code via the ACCC’s Infocentre: Report an issue affecting your business or franchise.
The ACCC has also launched a new portal that supports anonymous reports about potential contraventions of the code.
Read our media update for more information.
Kind regards,
Small Business team
Australian Competition and Consumer Commission (ACCC)