Last year the ACCC prosecuted Coles for unconscionable
conduct over its dealings with suppliers. The ACCC alleged that
Coles bullied suppliers into submitting to trading terms that
unfairly favoured Coles, often at significant expense to the
supplier. The latest news is that Coles has consented to court
orders that it pay $10 million in penalties.
$10 million is a pretty big number. And notwithstanding
Coles' consent, the judge gave careful consideration to the
appropriate scale of penalties. (A 140 page consent judgment has to
be a record.)
The thing is, we reckon $10 million wasn't anywhere near
enough. Here's why.
- At the outset, the ACCC opted to pursue penalties for
unconscionable conduct rather than misuse of market power.
Unconscionable conduct was the easier case to win. But the maximum
penalty per contravention is just $1.1 million, compared to $10
million for misuse of market power. The judge even noted that Coles
had 'misused its substantial market
