Major supermarkets to create Soft Plastics Taskforce

Following a conditional ACCC interim authorisation, major supermarket retailers will form part of a Soft Plastics Taskforce to explore solutions to address the immediate effects of REDcycle suspending its return-to-store soft plastics recovery program.

Coles, Woolworths and ALDI lodged an urgent application for interim authorisation on 16 November.

“We have moved quickly to approve the interim application as the suspension of the REDcycle program stopped in-store collections of soft plastic, raising community concerns and an urgent need to address the environmental risk of the existing stockpile and future waste,” said ACCC Deputy Chair Mick Keogh.

The supermarkets can now engage together in meetings of the Soft Plastics Taskforce, which would not be allowed without the ACCC’s authorisation. The meetings will consider and seek to develop and implement a short-term solution for the storage, transportation, processing, recycling and management of soft plastics.

“The application envisages that a longer-term solution to the issue of recycling soft plastics is needed and that the proposed conduct will not detract from or adversely affect the development of longer-term solutions,” Keogh said.

When the ACCC is satisfied that public benefit from business conduct outweighs any likely public detriment, it may grant an authorisation for any conduct that could otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).

“This interim authorisation allows cooperation between the major supermarket retailers for a limited period and for the particular purpose of exploring options for the storage, transport, processing, recycling and management of soft plastics to minimise the volume that may end up in landfill, which is of great benefit to us all,” Keogh said.

“The ACCC expects the applicants to resolve this situation urgently and has placed a number of reporting conditions on them to ensure we are informed of their progress. This will aid us in determining our final decision on the application, as well as whether the interim authorisation should be revoked.

“Separate to the application for authorisation, the ACCC is engaging with various industry stakeholders and representative bodies to ensure clarity and transparency in communications so as to minimise the risk of consumers being misled by representations about the recycling of soft plastics.”

Until it is revoked, the application for authorisation is withdrawn or the date the ACCC’s final determination comes into effect, the interim authorisation will continue. A public consultation process is set to begin shortly.

Image credit: iStock.com/AzmanJaka