What is the Food and Grocery Code of Conduct?
The Food and Grocery Code of Conduct, introduced in 2015, is a behavioral code to help retailers and suppliers regulate standards of business conduct in the grocery supply chain in order to build and sustain trust and cooperation. There are three main components within the FGCC: the governance model, key obligations and provisions, and an adjudication and dispute resolution process, all of which work together to promote fair and ethical dealing and contractual certainty.
How will the FGCC benefit the industry?
The introduction of the FGCC was a necessary step to improve the resiliency and efficiency of the grocery supply chain in Australia. The primary objective is to improve business conduct through guiding principles of certainty, transparency, and good faith in commercial dealings. By providing clarity for business practices, establishing key provisions and instigating formal dispute resolution processes, the Code will improve industry relationships and ultimately benefit Australians.
How was the FGCC designed and who was involved?
The journey to create Australia’s FGCC began in 2014. The AFGC was a principal architect of its development and worked collaboratively with Federal Government and supermarket retailers Coles and Woolworths to negotiate, finalise and implement by 2015. Introduced as a voluntary code prescribed under the Competition and Consumer Act 2010 it was binding for its signatories. This milestone marked a significant phase in the ongoing effort to promote good faith and fair-trading practices in the grocery sector.
In 2018, Prof Graeme Samuels AC, former Chair of the Australian Competition and Consumer Commission (ACCC) undertook a statutory review of the FGCC. The Government accepted 13 of the 14 recommendations proposed. The most important of which were changes to the dispute-resolution processes following a finding that the existing provisions were underutilised by suppliers. Further strengthening the FGCC for suppliers. The changes came into effect on 2 January 2021.
Further changes were made in 2024 following the Dr Craig Emerson review. On 24 June 2024, the Government released the final report of the review, with a response. The Government supported all 11 recommendations with the central recommendation that the FGCC be made mandatory, along with the introduction of significant financial penalties for noncompliance and the formalisation of alternate dispute resolution pathways. The new FGCC was established on 12 December 2024 and comes into effect on 1 April 2025.
Which retailers and what products are covered by the FGCC?
The FGCC was made mandatory following the 2024 review, large retailer and wholesaler organisations with a revenue in excess of $5 billion obligated to comply with the FGCC. The majority of products sold within a supermarket are automatically covered. The exceptions to this include food and beverages sold for in-store consumption and alcoholic drinks.
Confidential Advice line
If you have a concern about the FGCC, a retail behaviour or simply need to clarify a provision, get in touch via our confidential advice line. Contact us at:
