Wesfarmers Limited
(ASX:WES) owned supermarket giant Coles says it will fight against claims it is squeezing suppliers.
The Australian Competition and Consumer Commission (ACCC) is suing the supermarket for allegedly engaging in unconscionable conduct to 200 of its smaller suppliers in 2011. According to the ACCC Coles squeezed its suppliers for money, enforced its suppliers to pay rebates and threatened its suppliers with commercial consequences if the rebate was not paid.
The consumer watchdog says the proceedings have been sparked by a broader investigation on the inappropriate treatment of suppliers by the major supermarket chains.
The ACCC is seeking penalties, declarations, injunctions and costs and says the matter is listed for a hearing in Melbourne on 6 June 2014.
In response Coles says it is committed to negotiating fairly, and, working collaboratively with its suppliers and will vigorously defend the allegations made against it by the ACCC.
Wesfarmers lifted its net profit to $1.4 billion in the first half of the 2014 financial year.
