Woolworths in court following ACCC allegations


By Emily Bencic


Woolworths will face court today (Monday) after the Australian Competition and Consumer Commission (ACCC) alleged that the company developed a strategy to reduce a $50 million short-fall in its first-half gross profits by demanding more than $60 million cash from suppliers, outside formal trading agreements. The ACCC launched the proceedings in December 2015.

The ACCC proposed the following allegations:

  • Woolworths developed a strategy, approved by senior management, to urgently reduce expected significant half year gross profit shortfall by 31 December 2014.
  • Woolworths  designed a scheme, referred to as “Mind the Gap” to systematically obtain payments from a group of 821 “Tier B” suppliers.

Read more here.

This story first appeared in Appliance Retailer.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@governmentnews.com.au.  

Sign up to the Government News newsletter

Leave a comment:

Your email address will not be published. All fields are required