The Australian Competition and Consumer Commission (ACCC) has granted conditional authorization to Coles Group, Woolworths Group, and ALDI Stores, allowing them to collaborate on recycling stockpiled soft plastics and to implement a pilot in-store collection program until July 31, 2026. This decision follows the collapse of the REDcycle program, which previously managed a nationwide soft plastics collection and recycling initiative.

ACCC Deputy Chair Mick Keogh emphasized the importance of this collaboration, stating that it enables the supermarkets to address the legacy stockpiles left by REDcycle. The ACCC has set conditions requiring the supermarkets to provide quarterly progress reports and meeting minutes to ensure transparency and accountability in their efforts to remediate the stockpiles.

The authorization also allows the pilot program for in-store collection of soft plastics to continue in Victoria and New South Wales, with plans for expansion to other regions. The ACCC expects the supermarkets to act urgently to enhance these operations, ensuring more consumers have access to recycling options.

Additionally, the ACCC has imposed a new condition preventing the supermarkets from restricting recycling or logistics providers from servicing other customers. This is aimed at fostering competition and ensuring that the recycling ecosystem remains robust.

While the ACCC's current authorization does not cover any future stewardship schemes, it acknowledges that a long-term solution for soft plastics recycling may require separate authorization in the future. The ACCC's decision reflects its commitment to balancing public benefit with competition law considerations.