Woolies slammed by watchdog by supplier dealings

WOOLIES is getting hit on a number of fronts. This time, by the Australian consumer watchdog which alleged the supermarket engaged in “unconscionable conduct”.

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THE Australian consumer watchdog is taking court action against Woolworths.

The Australian Competition and Consumer Commission (ACCC) alleged the supermarket giant developed a strategy to “urgently reduce” its expected significant half year gross profit shortfall by December 31, 2014. The ACCC on Thursday said it had launched action in the Federal Court, alleging Woolworths engaged in “unconscionable conduct” in dealings with a large number of its supermarket suppliers, in contravention of the Australian Consumer Law.

It is alleged that one of the ways Woolworths sought to reduce its expected profit shortfall was to design a scheme, referred to as Mind the Gap, in which it sought about $60 million in payments from a group of suppliers to its supermarkets.