ACCC Proposes to Extend Soft Plastics Recycling Collaboration Between Major Supermarkets

Australia's consumer watchdog, the Australian Competition and Consumer Commission (ACCC), has proposed a further extension for major supermarket chains Coles, Woolworths, and Aldi to continue their collaboration in recycling stockpiled soft plastics and piloting in-store collection programs. The proposed extension would last until July 31, 2026, ensuring the continued management of soft plastic recycling efforts across the country.

This move follows the collapse of the Redcycle program, which was previously responsible for soft plastics collection and recycling. The ACCC had initially authorized the collaboration between these supermarket giants in June 2023, after Redcycle’s downfall left millions of kilograms of soft plastics unprocessed. In July 2024, an interim authorisation was granted to allow the continuation of the collaboration while the formal approval process moves forward.

The Importance of the Extension

The ACCC's proposal aims to address a growing concern: the large stockpile of soft plastics that has remained unprocessed for nearly two years. Mick Keogh, ACCC deputy chair, expressed concern that despite the efforts of the supermarkets, a vast majority of the stockpiled plastics from Redcycle have yet to be recycled. However, there is hope on the horizon, as more recycling processors are expected to come online in 2025, allowing for improved processing capabilities.

The ACCC’s draft determination for further authorisation is now open for public feedback, with submissions due by January 24, 2025. This consultation period provides an opportunity for the public to weigh in on the future of soft plastics recycling in Australia and whether they support the proposed extension for Coles, Woolworths, and Aldi to continue their collaboration.

Key Proposals and Conditions

The ACCC has outlined several conditions for the extended authorisation to ensure transparency and accountability in the process. These include:

1. Quarterly Progress Reports: The supermarkets will be required to submit detailed reports to the ACCC, outlining their progress in managing and processing the soft plastics stockpiles.

2. Regular Taskforce Meetings: The supermarkets will need to provide meeting minutes from the Soft Plastics Taskforce, further ensuring that the collaboration remains transparent and effective.

3. End of Collaboration Clause: The agreement will end immediately if the authorisation is revoked or expires, meaning that all joint efforts to manage the stockpiled plastics would cease at that point.

4. New Restrictions on Logistics Providers: In a bid to ensure fair competition, the ACCC is proposing new conditions to prevent the major supermarkets from restricting recycling or logistics providers from offering services to other customers.

The Road Ahead

The extension of the soft plastics recycling collaboration is crucial, not only to clear the existing stockpiles but also to kickstart a more sustainable recycling system in Australia. With increasing consumer concern over plastic waste and recycling practices, this collaboration aims to offer a solution that benefits both the environment and the community.

As the supermarkets work toward expanding their recycling capacity, it’s important to maintain clear communication with the public and ensure that consumers are aware of the progress being made. Transparency will play a key role in building trust in these efforts, ensuring that the public feels confident that their recycling efforts are making a meaningful impact.

With the final determination set to take place after the feedback period ends, the future of soft plastics recycling in Australia is now in the hands of the public and the ACCC. The potential for a more sustainable and effective solution to plastic waste is within reach, but it will require continued collaboration and innovation from all parties involved.