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ARTICLE · 14 FEBRUARY 2017

Woolies Mind the Gap scheme found not to be unconscionable

Cooper Grace Ward
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This case highlights the high threshold to be met for a court to consider an entity guilty of unconscionable conduct.

AustraliaConsumer Protection
Charles Sweeney
Charles Sweeney
David Grace
David Grace
Gabrielle Honey
Gabrielle Honey
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The Australian Competition and Consumer Commission (ACCC) alleged that Woolworths engaged in unconscionable conduct within the meaning of the Australian Consumer Law when it designed and implemented its Mind the Gap scheme in 2014.

In 2014 Woolworths was facing a half-year profit shortfall. As part of its strategy to 'close the gap' between targeted sales and profit and expected sales and profit, Woolworths implemented the scheme. One element of the scheme saw Woolworths seeking payments from Tier B suppliers, based on the performance of those suppliers in the period from July to October 2014, relative to the corresponding period in 2013, according to metrics or 'lenses' adopted by Woolworths.

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