The Commission will also be given functions and powers to conduct audits of the supermarket retailers and wholesalers to determine whether they are dealing with suppliers lawfully, fairly, and in good faith; and whether the corporations are complying with the requirements of the Mandatory Code.
The bill should be supported because it addresses the significant power imbalance in the food and grocery sector by making the Code of Conduct mandatory for large retailers and wholesalers. This ensures fair treatment of suppliers, particularly in the perishable goods market, by imposing standardized business practices and significant penalties for non-compliance. As a result, it is likely to lead to more equitable pricing and treatment throughout the supply chain, which ultimately benefits consumers [Judgment]. Additionally, by empowering the Commission to conduct audits, the bill enhances transparency and accountability, contributing to a fairer market environment.
The bill should be opposed because it imposes additional regulatory burdens on large retailers and wholesalers, potentially stifling innovation and efficiency in the sector. The mandatory nature of the Code could lead to increased operational costs, which may be passed onto consumers through higher prices [Judgment]. Furthermore, the significant penalties and audit powers granted to the Commission could create an environment of uncertainty and fear among businesses, discouraging investment and growth in the industry.
2024-11-04
Not Proceeding
LITTLEPROUD, David, MP
Unspecified
Consumer Protection, Competition Policy, Democratic Institutions