A number of Australia’s drinks industry associations have welcomed the Government’s plan to crackdown on unfair trading practices to small businesses.
Last week the Albanese Government announced it was extending protections on unfair trading after hearing that thousands of small businesses have experienced substantial harm when dealing with larger businesses.
With Australia’s liquor and hospitality industry being made up of thousands of small businesses the news was widely welcomed.
Retail Drinks Australia CEO Michael Waters told The Shout he was looking forward to working with the Government on the plans and ensuring any reforms wouldn’t impose any extra burdens on small business.
“We look forward to participating in Treasury’s upcoming review on the design of unfair trading protections for small businesses, having previously written a submission in response to the Unfair Trading Practices Supplementary Consultation Paper in December last year.
“In doing so, we will seek to ensure that any forthcoming amendments to Australian Consumer Law are clear, practical, and do not impose unnecessary burdens on business.
“Whilst we do not have reason to believe that unfair trading practices are particularly prevalent in the liquor retailing space, we are committed to ensuring that robust standards of practice continue to be at the forefront of the sector.
“To this end, we have promoted standards of practice which go further than both Australian Consumer Law and state and territory legislative and regulatory frameworks, including the Online Alcohol Sale and Delivery Code of Conduct.”
The Australian Hotels Association said the new protections will help it to carry out some its fundamental principles.
“One of the primary reasons the AHA was founded was to protect its members from unfair trading practices,” AHA National CEO Stephen Ferguson told The Shout.
“Having legislative force actually underpinning that will be welcomed by our members.”
The Independent Brewers Association said it continues to demand a thorough review of Australia’s beer market to address the market structure and ensure fair access for small brewing businesses.
CEO Kylie Lethbridge said she was looking forward to participating in the unfair trading consultation process on behalf of the 675+ small Australian-owned brewing businesses.
“A consultation that enables independent breweries to provide information confidentially is so important – as our members routinely tell us that they fear going on any public record with their concerns due to the likelihood of retaliation,” Lethbridge said.
“And in a market where the big brewers have 83 per cent market share and dominate the on-premise market – losing ranging in retail would devastate a small business.”
Australian Grape & Wine (AGW) also welcomed the news, saying it acknowledges the need for targeted protections that safeguard small businesses from unfair trading practices, including those that impact grape growers and wine producers in their dealings with larger commercial entities.
AGW CEO, Lee McLean said: “This is an important step towards ensuring that small businesses across our sector, including grape growers and winemakers, are afforded the protections they need to operate fairly and competitively in the marketplace. We have long advocated for a more level playing field, and this commitment from the Albanese Government is a positive move in the right direction.
“The nuances of the wine sector must be well understood in this process. While we strongly support measures to prevent unfair trading practices, it is crucial that any new framework is tailored to the realities of our industry. We will engage constructively to ensure the final protections strike the right balance between fairness, competition, and commercial flexibility.”
Treasury said it will consult this year on the design of protections for businesses, including on whether a principles‑based prohibition should apply and whether specific unfair trading practices should be targeted to protect small businesses.