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Briefs

Food and Grocery Code of Conduct updates

Food and Grocery Code of Conduct updates

20 February 2024

Two important updates regarding the Food and Grocery Code of Conduct (FGCC) have been announced by the government today. 

Dispute resolution review 

Further to the review of Part 5 of the FGCC conducted last year, covering dispute resolution mechanisms, the government has accepted all recommendations made in the Treasury’s final report. The recommendations are to: 

  • enable Code Arbiters to mediate 
  • provide for suppliers to contact and seek preliminary information from Code Arbiters without making a formal complaint 
  • enable the Independent Reviewer to conduct an evaluation of Code Arbiters’ complaint handling processes, to determine whether complaints have been handled in accordance with the FGCC and the Code Arbiter’s complaints handling procedure, and 
  • empower the Independent Reviewer to examine a Code Arbiter’s complaint files as part of this evaluation. 

These changes will be brought into effect as part of a larger suite of amendments following the conclusion of the full FGCC review. 

Dr Craig Emerson to lead FGCC review 

It has also been announced that former trade minister Dr Craig Emerson will lead the full FGCC review, the final report for which is due to be provided by 30 June. The review’s terms of reference cover: 

  • the ongoing need for the FGCC, which is scheduled to expire in 2025 due to a sunset clause 
  • the effectiveness of the FGCC in improving commercial relationships between retailers, wholesalers and suppliers in the FMCG sector 
  • whether the FGCC’s provisions should be extended to other retailers or wholesalers in the sector 
  • whether the FGCC should be made mandatory 
  • whether the FGCC should include civil penalties for breaches. 

With the reviewer now announced, we await further details regarding the consultation process. The AFGC will engage with Dr Emerson in order to ensure that the perspectives of FMCG suppliers are given full consideration throughout the review. Member companies are also encouraged to engage with the process. 

If you have any input on any current areas of challenge, examples of obligations not working effectively, suggestions for strengthening provisions, ideas on future-proofing the FGCC, or require further information, please contact Rick Umback, Manager, Industry Affairs (Retail): rick.umback@afgc.org.au