ACCC investigates Woolies over supplier allegations

By AdNews | 19 December 2014

The ACCC has confirmed it is investigating Woolworths over conduct with its product suppliers. 

According to a story in the Australian Financial Review, Woolworths buyers have told its suppliers that if they refuse to help fund its new “cheap, cheap” advertising campaign, suppliers goods could be removed from the stores.

The supermarket giant's “cheap, cheap” campaign was released in September, with Leo Burnett handling the creative and the media work being done by Carat.

The ACCC chairman Rod Sims said in a statement that it wouldn't comment further accept to say it was investigating the matter.

"We have received recent further complaints about supermarket supplier issues which we will consider. We will make no further comment at this stage,” Sims said.

“Should suppliers or others wish to provide information to the ACCC (including anonymously or requesting that information be treated confidentially), we would encourage them to contact us by calling our infocentre and requesting to speak to a senior manager involved in supermarket supplier investigations."

The news comes days after Coles was taken to task by the ACCC for overcharging suppliers.

The ACCC and Coles will now head to the High Court to figure out what action will be taken against Coles after the retailer admitted to unconscionable conduct against suppliers in late 2010 and 2011.

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