ACCC won’t appeal ruling on Woolworths

The watchdog has decided to not appeal Woolworths’ clearance from allegations of unconscionable conduct.

The competition watchdog has decided against appealing a Federal Court ruling that cleared Woolworths of allegations of unconscionable conduct in its dealings with suppliers.

The claims detailed by the Australian Competition and Consumer Commission focused on a purported push to squeeze $60 million from suppliers to fill a profit gap two years ago, with the Federal Court declaring last week the retailer had no case to answer.

ACCC chairman Rod Sims labelled the ruling as “unfortunate” at the time, but left the door open to a challenge.

That door was slammed shut today.

“The ACCC has considered this judgment carefully and decided not to appeal,” Mr Sims said.

“In particular, the ACCC has noted the acceptance by the Court of the evidence given by Woolworths executives, and the Court’s comments on the ACCC’s reliance on documents to establish its case.

“The ACCC will take these comments into account in its consideration of future cases on unconscionable conduct, including in the supermarket sector.”

Mr Sims said the regulator would not hesitate to proceed with the legal pursuit of claims of unconscionable conduct despite the damaging defeat in the year-long case.

Woolworths and rival Coles have long been criticised for how they deal with suppliers, with the allegations levelled at the former including claims it threatened suppliers with less in-store marketing support and a delisting from its shelves.

The supermarket chain was adamant it had not breached the law, although chairman Gordon Cairns admitted its practices during that period were not in line with how it wants to treat its suppliers.

“It was normal negotiating practice at that time,” he said.

“(But) we’ve set a higher standard that believes in mutuality of benefit.”