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Steve Fielding takes on Coles and Woolies (Read 8216 times)
freediver
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Steve Fielding takes on Coles and Woolies
Jun 14th, 2007 at 2:56pm
 
http://www.smh.com.au/news/National/Fielding-wants-predatory-pricing-to-end/2007/06/14/1181414436902.html

Small businesses would be protected from predatory pricing under a bill to be introduced to parliament by Family First senator Steve Fielding.

The Victorian senator said families were being ripped off as retail giants Coles and Woolworths used their clout to price small players out of the market.

The supermarket chains held 80 per cent of the grocery trade and a large slice of the petrol market, and last year reaped huge profits, Senator Fielding said.

He pledged to introduce legislation next week, similar to that in Canada, that amended the Trade Practices Act to outlaw predatory pricing designed to destroy competition.

"It is a joke that small business has been waiting for protection for over three years, since the Senate economics references committee recommended action," he said in a statement.
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Re: Steve Fielding takes on Coles and Woolies
Reply #1 - Jun 14th, 2007 at 9:29pm
 
that idea does have some merit.
Big companies starve small oerators out easily, then up the prices as there is no local competition.

small operators have no answer at all.
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Woolworths withdraws own brand tissues
Reply #2 - Aug 28th, 2007 at 12:00pm
 
http://www.smh.com.au/news/Business/Woolworths-withdraws-own-brand-tissues/2007/08/27/1188067024805.html

Supermarket giant Woolworths has pulled its own brand of imported Indonesian tissue products from shelves over allegations their packaging makes misleading environmental claims.

The forestry union has called on the Australian Competition and Consumer Commission (ACCC) to investigate claims production of the Woolworths Select tissue and toilet paper degraded the environment while being labelled as sustainable.

The packaging had said the products were sourced from "sustainable forest fibre from an environmentally responsible company".

However, green groups say no Indonesian company has ever received such accreditation from internationally recognised bodies.



Coles hit by $5m fine over grogfight
Katherine Jimenez and Vanda Carson
April 27, 2005
COLES Myer has been hit with one of the biggest fines imposed on an Australian company for anti-competitive behaviour after the retail giant admitted trying to out-muscle smaller pub and bottleshop owners.

Admitting to five breaches of the Trade Practices Act, Coles agreed to pay a fine of $4.75million and costs of $250,000 to settle a two-year legal dispute with the Australian Competition and Consumer Commission.

The ACCC claims Coles - and its rival Woolworths - entered into contracts with pubs and bottle shops in NSW that it used to restrict or prevent smaller competitors from supplying packaged takeaway liquor to consumers.

Woolworths and Liquorland were accused of lodging objections to liquor licensing applications from other bottle shops and pubs before the NSW liquor licensing court. The supermarket chains would withdraw their objections if their smaller rivals agreed to certain conditions.

These included stopping pubs selling takeaway alcohol, opening a dedicated bottle shop or a drive-through bottle shop, offering home delivery services to customers or expanding their premises.

The settlement agreed on by ACCC and Coles will need to be approved by the Federal Court on Friday. Woolworths, which is fighting a similar ACCC action, is likely to lodge a submission arguing that the matter should not be settled, on the grounds that the outcome in relation to Coles may influence its case.

In 2003, the ACCC - under former chairman Allan Fels - brought an action against the two retailers, alleging that Coles's Liquorland had on 30 occasions breached Section 45 of the Trade Practices Act, which outlaws collusive behaviour, by entering into agreements that restricted the way small operators could run their businesses.

Woolworths is defending 16 alleged breaches of the act. Woolworths and Coles dominate Australia's $11billion packaged liquor sales, controlling more than 43 per cent of the market.

Publican Bob Bourne, of Gosford, NSW, told The Australian last night that he intended to pursue civil action against Coles now that it had admitted guilt.

"I asked the ACCC what compensation costs are due to me. Now I am seeking $2million damages for the loss of trade for five years," Mr Bourne said.

"Following the five (breaches), there could well now be five separate instances where people individually sue them (Coles) with a strong footing, because they have admitted guilt."

Mr Bourne owns the Henry Kendell Family Tavern in West Gosford. He was asked to sign an agreement by Coles in 2000 when he attempted to take over a site vacated by the retailers's Liquorland store.

Coles allegedly imposed several conditions, including a ban on selling or home-delivering packaged liquor, which in turn affected the value of the lease.

In January, he successfully had the conditions removed.

Mr Bourne intends to seek compensation for the liquor sales he has been prevented from making since 2000. He said the price of the tavern was recently assessed and the valuer put an "extra $465,000 on the value of the lease because of the striking-out of those conditions".

In a statement yesterday, Coles said its commitment to complying with the Trade Practices Act was "unwavering".

"These events are very much in the past and since they took place we have developed and implemented a group-wide trade practices compliance strategy that seeks to engage all aspects of our operations," Coles chief John Fletcher said.

This latest storm comes as criticism builds about the market dominance of the two retailers, not only across the liquor market but also in petrol and fresh food. Combined, it is estimated that Coles and Woolworths control about 80c of every grocery dollar spent in Australia.

Suppliers have also complained of bullying tactics.

Last week, millionaire businessman Dick Smith claimed his food company had been threatened with having its peanut butter removed by Coles if it did not pay up-front to keep it on the shelves.

Woolworths controls about 25per cent of the liquor market through its Dan Murphy and Beer Wine and Spirits banners. Last November, it paid about $1.3billion for pub and gaming company Australian Leisure and Hospitality, which will extend its share, particularly in Queensland.

Coles has an 18 per cent share through its Liquorland and Vintage Cellars banner. Soon it will aggressively roll out a new, large format called First Choice Superstores to target the value end of the market.

Woolworths declined to comment yesterday.
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Re: Steve Fielding takes on Coles and Woolies
Reply #3 - Aug 28th, 2007 at 12:03pm
 
Woolies facing millions in fines

FACED with multi-million-dollar fines, supermarket giant Woolworths has refused to accept a ruling that it unfairly forced small liquor outlets to reduce their business.

Federal Court judge James Allsop yesterday ruled the company's actions towards the Sydney suburban and regional NSW outlets were anti-competitive.

It comes four months after the same court hit Woolworths with a record $8.9million fine for price-fixing in the Victorian bread market.



Woolies fined $7m for illegal agreements

http://www.smh.com.au/news/Business/Woolies-fined-7m-for-illegal-agreements/2006/12/22/1166290719333.html

Woolworths Ltd has been fined $7 million for entering into illegal anti-competitive agreements relating to its liquor business.

Justice Allsop of the Federal Court found that Woolworths had entered into four agreements with liquor license applicants with the specific purpose of lessening competition.

Liquorland admitted it had entered into illegal agreements and was fined $4.75 million in May 2005, while the case against Woolworths continued.



Woolworths under fire over 'green' paper

http://www.smh.com.au/news/Business/Woolworths-under-fire-over-green-paper/2007/10/10/1191695961329.html

Supermarket giant Woolworths has been accused of continuing to sell paper products which make allegedly misleading environmental claims on the label.

Woolworths withdrew Select brand products manufactured in Indonesia by Asian Pulp and Paper (APP) last month, after concerns over a forest sustainability logo on the label.

APP is suspected of illegally clearing rainforests, and the sustainability logo was removed before the products were returned to store shelves.

But NSW Greens MP John Kaye said toilet paper made by the same company in China was still being sold with the logo.



Robertson wants inquiry into food prices

http://www.smh.com.au/news/National/Robertson-wants-inquiry-into-food-prices/2007/10/10/1191695957106.html

Queensland Health Minister Stephen Robertson wants an Australian Competition and Consumer Commission (ACCC) inquiry into food prices.

A Queensland Health survey has shown the state's families are paying an average of $149 more for the same basket of food than they paid in 2000.

Mr Robertson said that in 2000 the ACCC predicted that during the first six months of the GST, the cost of fresh food would drop 1.1 per cent.

"Between May 2000 and February 2001, it actually increased by 10.3 per cent," he said.

"It's been soaring above CPI (Consumer Price Index) ever since.



CFMEU, Woolies clash over toilet paper

http://www.smh.com.au/news/breaking-news/cfmeu-woolies-clash-over-toilet-paper/2007/11/15/1194766858871.html

Unionists plan to confront Australia's biggest retailer Woolworths Ltd over its decision to keep stocking imported toilet paper and tissues sourced from timber they say was logged unsustainably.

The Construction Forestry Mining and Energy Union will also take out advertisements in major newspaper to coincide with Woolworths' annual general meeting of shareholders on Friday.

The tissue and toilet paper issue reared its head three months ago when Woolworths was accused of sourcing its products from Asia Pulp and Paper (APP), the world's largest pulp producer.

The company has been accused by environmental groups of unsustainable logging in Indonesia and China.



Woolies 'promoting cigarettes to kids'

http://www.smh.com.au/news/National/Woolies-promoting-cigarettes-to-kids/2007/11/16/1194766938659.html

Woolworths supermarkets have been accused of promoting tobacco products to children.

At the company's annual general meeting, the head of the lobby group Action on Smoking and Health (ASH), told executives about a survey which found tobacco displays in Woolworths supermarkets were highly visible to children from both inside and outside the shops.

ASH chief executive Anne Jones said the placing of the products was contrary to the company's claims the store was socially responsible.

"Woolworths supermarkets are among the worst offenders for placing tobacco displays in prominent front-of-shop positions near other items that attract young people," Ms Jones said in a statement distributed outside the meeting.



Woolworths welcome price monitoring

http://www.smh.com.au/news/National/Woolworths-welcome-price-monitoring/2007/11/16/1194766927645.html

Australia's biggest retailer Woolworths Ltd has welcomed a federal Labor plan for food prices to be monitored by a regulatory body.
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« Last Edit: Nov 16th, 2007 at 4:33pm by freediver »  

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