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ACCC proposes to authorise continued cooperation on soft plastics recycling

The ACCC is proposing to grant authorisation with conditions to the major supermarkets Coles Group, Woolworths Group and ALDI Stores, to continue their collaboration to recycle stockpiled soft plastics and continue with the pilot in-store collection program until 31 July 2026.

The ACCC is currently seeking feedback on this proposed further authorisation.

The ACCC first authorised this collaboration on 30 June 2023, following the collapse of REDcycle, which operated a soft plastics collection and recycling program. In July 2024, the ACCC granted interim authorisation that allowed the supermarkets to continue to collaborate through the Soft Plastics Taskforce as the previously authorised conduct was due to expire.

“It is very concerning that the vast majority of the stockpiles left over from REDcycle have not been processed almost two years later. While some limited progress has been made on reducing the stockpiles, the rate of progress is still significantly limited by the available processing capacity of soft plastic processors,” said ACCC deputy chair Mick Keogh.

“We understand the outlook for processing a larger share of the soft plastics stockpile is improving as more processors are due to come online in 2025, and we propose to grant authorisation to enable continued joint management of the stockpile without further delays.”

The proposed authorisation will also allow the soft plastics in store collection pilot program to continue operating in Victoria and New South Wales and expand to other areas.

“The pilot program has expanded under the authorisation previously granted by the ACCC, and whilst recognising that it needs to expand in line with available processing capacity, the ACCC expects that the supermarkets will continue with some urgency to expand these operations,” said Keogh.

The ACCC is proposing the same reporting conditions as the previous authorisation, requiring the major supermarkets to provide the ACCC with quarterly progress reports and minutes of each meeting of the  Soft Plastics Taskforce. It is also a condition that all arrangements must immediately stop when the authorisation expires or is revoked.

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