The Australian competition watchdog is taking supermarket giant Woolworths to court for allegedly engaging in unconscionable conduct in its dealings with a large number of its supermarket suppliers.
The Australian Competition and Consumer Commission alleges that in December last year Woolworths sought to obtain payments from 821 “tier B” suppliers.
The suppliers were allegedly asked for payments ranging between $4291 to $1.4 million in order to support the supermarket.
Woolworths did not have a pre-existing contractual entitlement to seek these payments and leveraged its bargaining position while seeking the payments, according to the competition watchdog.
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Broede Carmody is a former senior SmartCompany reporter. Before this, he was a co-editor of RMIT University’s student magazine Catalyst.
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