The ACCC has granted authorisation to Coles, Woolworths and ALDI, to continue their collaboration to recycle stockpiled soft plastics and implement the pilot in-store collection program until 31 July 2026.
The ACCC first authorised this collaboration granting interim authorisation in November 2022, following the collapse of REDcycle, which operated a nationwide soft plastics collection and recycling program.
“Our decision today allows the supermarkets to continue working together to process the remaining REDcycle legacy stockpiles,” says ACCC Deputy Chair Mick Keogh.
“Whilst it is encouraging to see that some progress is now being made as processing capacity improves, the ACCC expects that the supermarkets will continue to prioritise stockpile remediation efforts to prevent further delays.”
Authorisation will also allow the soft plastics in-store collection pilot program to continue operating in Victoria and NSW and expand to other areas.
“It has been encouraging to see the pilot program expand under the current interim authorisation,” says Mr Keogh.
“Whilst we recognise that further expansion needs to be in line with available processing capacity, the ACCC expects that the supermarkets will continue with some urgency to expand these operations so that more consumers have the option of recycling their soft plastics.”
The ACCC’s authorisation is also subject to a new condition to prevent the major supermarkets from restricting recycling or logistic providers from supplying services to another customer.
Following the ACCC’s draft determination proposing to grant authorisation in December 2024, the ACCC received a small number of submissions, some of which were supportive while others called for broader involvement of the supermarkets in developing industry solutions to soft plastics.
The ACCC understands that any long-term soft plastics solution, whether in the form of an industry-led stewardship scheme or otherwise, is likely to be the subject of a separate, future application for authorisation and considers that the proposed conditions by interested parties are outside the scope of this authorisation.
Conditions
The ACCC has decided to impose the same reporting conditions as the previous authorisation. It requires the major supermarkets to provide the ACCC with quarterly progress reports and minutes of each meeting of the Soft Plastics Taskforce. These reports and minutes will be published on the ACCC’s public register.
It is also a condition that all arrangements must immediately stop when the authorisation expires or is revoked.
“This is a significant issue for many consumers, so continued transparency about what progress the supermarkets are making in their processing of the soft plastic stockpiles is important,” says Mr Keogh.
