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Competition and Consumer (Industry Codes—Food and Grocery) Regulations 2024
23Payments for shrinkage
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23 Payments for shrinkage
(1) A large grocery business must not: (a) be a party to a grocery supply agreement that directly or indirectly requires a supplier to make payments as compensation for shrinkage; or (b) otherwise directly or indirectly require such payments.
Civil penalty:
(a) for a contravention by a body corporate—3,200 penalty units; or
(b) for a contravention by a person who is not a body corporate—640 penalty units.
(2) Subsection (1) does not prevent the large grocery business from raising, discussing or agreeing with a supplier proposals and procedures to mitigate the risk and occurrence of shrinkage.