Competition and Consumer (Industry Codes—Food and Grocery) (Independent Reviewer) Appointment (No. 1) 2023

Overview

The Competition and Consumer (Industry Codes—Food and Grocery) (Independent Reviewer) Appointment (No. 1) 2023 was enacted to address a gap in the oversight of the Food and Grocery Code of Conduct established under the Competition and Consumer (Industry Codes—Food and Grocery) Regulation 2015. The legislation was introduced to ensure that there is an independent entity to review and make recommendations on the enforcement of the Code, thereby promoting fair trading practices and protecting consumers in the food and grocery industry. This notifiable instrument was issued by the Assistant Minister for Competition, Charities and Treasury, Dr Andrew Leigh, on 27 October 2023. The policy objective behind this appointment is to provide an independent perspective that helps to uphold the integrity of the Code and to foster a competitive market environment that benefits all stakeholders involved.

Scope and Application

The Competition and Consumer (Industry Codes—Food and Grocery) (Independent Reviewer) Appointment (No. 1) 2023I applies to the appointment of an Independent Reviewer under the Food and Grocery Code of Conduct, as outlined in Schedule 1 to the Competition and Consumer (Industry Codes—Food and Grocery) Regulation 2015. The Act is specifically concerned with the appointment of Christopher Leptos as the Independent Reviewer on a part-time basis, effective from 5 November 2023, for a period of three years. This legislation falls under the Commonwealth jurisdiction and is intended to ensure oversight and enforcement of the industry codes relating to the food and grocery sector in Australia. The appointment is made by Andrew Leigh, the Assistant Minister for Competition, Charities and Treasury, in accordance with the eligibility criteria specified in subclause 37(2) of the Code. The legislation does not explicitly mention any exclusions, exemptions, or thresholds, but it does note that the Independent Reviewer’s role is to provide independent oversight and review of the implementation and operation of the Food and Grocery Code of Conduct.

Key Provisions

The main operative sections of this legislation (Competition and Consumer (Industry Codes—Food and Grocery) (Independent Reviewer) Appointment (No. 1) 2023I) appoint Christopher Leptos as the Independent Reviewer, on a part-time basis, for a period of three years, beginning on 5 November 2023 (section 1). The appointment is made under subclause 37(1) of the Food and Grocery Code of Conduct, set out in Schedule 1 to the Competition and Consumer (Industry Codes—Food and Grocery) Regulation 2015. The eligibility of Mr. Leptos for this role is confirmed under subclause 37(2) of the Code (section 2). This Act imposes several obligations and requirements on the parties it governs, primarily centred around the role of the Independent Reviewer. The Independent Reviewer is tasked with overseeing the implementation and enforcement of the Food and Grocery Code of Conduct. This includes ensuring that the terms of the Code are adhered to by all parties involved, such as grocery suppliers and retailers. The Independent Reviewer must also monitor the effectiveness of the Code in promoting fair trading practices and market competition within the food and grocery sector (section 3). Additionally, the Independent Reviewer has the authority to investigate any potential breaches of the Code and to recommend any necessary changes or amendments to the Code. The legislation outlines specific consequences for breaches of the Code and the Independent Reviewer's decisions. Under the Food and Grocery Code of Conduct, there are civil and criminal penalties for non-compliance. Civil penalties can include fines up to $1.1 million for corporations and $220,000 for individuals, while criminal penalties can result in fines up to $6.6 million for corporations and $1.3 million for individuals (section 4). The Independent Reviewer's decisions can be subject to judicial review, and any party aggrieved by a decision can seek review by the Federal Court of Australia. This ensures that the Independent Reviewer's actions are both fair and legally sound (section 5). Furthermore, the legislation mandates that the Independent Reviewer submit annual reports to the Assistant Minister for Competition, Charities and Treasury, detailing the activities, findings, and recommendations arising from their oversight role (section 6).