Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) owned Coles have agreed to a code of conduct in a move to protect their suppliers, according to media reports.
The code agreed to by the supermarket giants and the Australian Food and Grocery Council will restrict Woolworths and Coles from using their market power to alter agreements with suppliers.
The voluntary code will be included in the Competition and Consumer Act.
Federal Small Business Minister Bruce Billson congratulated the council, Coles and Woolworths for moving to protect small suppliers in the highly-competitive supermarket sector.
Woolworths reported a net profit of $2.26 billion in fiscal 2013.
