Retailers pleased to see courts support ACCC – Federal Court declare Woolworths fuel dockets breach agreement

 

PEAK retail industry body the Australian Retailers Association (ARA) commended the Australian Competition and Consumer Commission (ACCC) for taking efficient enforcement action against Woolworths on the issue of fuel shopper dockets.

The Federal Court today found supermarket giant Woolworths guilty of breaching their agreement made last December to cap fuel shopper dockets at 4 cents per litre.

ARA Executive Director Russell Zimmerman said the ARA is pleased to see these undertakings being upheld by the courts.

"In addition to its standard offer of a 4c discount per litre for shoppers spending at least $30 in its supermarkets, Woolworths had been allowing shoppers to increase the discount to 8c per litre by spending a minimum $5 at the convenience stores attached to its chain of petrol stations – obviously an attempt to get around the agreement that the ARA, along with independent retailers, fought long and hard to reach.

"The retail industry is somewhat reassured by the shutting of the door on anti-competitive cross-subsidisation in whatever back door methods that were used to get around this agreement.

"Without the ACCC keeping a close eye on this agreement, fair competition would be destroyed, making it virtually impossible for independent retailers to have a fair go.

"It is encouraging that the ACCC has demonstrated its determination to safeguard the interests of consumers and to promote more effective competition in the fuel market. It is our hope that Woolworths now understands the consequences of such breaches," Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia's $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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