The Australian Competition and Consumer Commission (ACCC) has granted an eight-year authorisation to Soft Plastic Stewardship Australia (SPSA) and its industry members, allowing them to collect and recycle used soft plastic packaging under a voluntary scheme. This initiative has been developed by stakeholders from the food and grocery industry, including major players like Woolworths, Coles, ALDI, Nestlé, Mars, and McCormick Foods.

The primary goal of the scheme is to increase the collection and recycling of soft plastic items, such as shopping bags and food wrappers, from consumers. The ACCC was not involved in the design or operations of the scheme but assessed the application for exemption from certain competition laws based on the public benefit it could provide.

ACCC Deputy Chair Mick Keogh highlighted that the scheme is expected to divert soft plastics from landfills, thus providing an environmental benefit. Industry participants will contribute a fee based on the amount of soft plastic packaging they generate annually, reflecting their commitment to the initiative.

Keogh noted that many Australians are eager to recycle soft plastics and are concerned about their environmental impact. The current recycling options available to consumers are limited, making the SPSA scheme a vital step in expanding those choices.

The ACCC's exemption comes with specific conditions, including annual public reporting on the scheme's performance, independent reviews in the third and seventh years, and the requirement for SPSA's board to include independent directors. Additionally, SPSA is prohibited from entering into exclusive contracts with processors.

It is important to note that the ACCC does not regulate the creation or use of soft plastic packaging, nor does it manage recycling schemes. The Australian Government is separately working on reforms to packaging regulations to minimize waste and promote a circular economy.

The ACCC's role as a competition regulator involves assessing applications for authorisations that allow competitors to collaborate, and it may grant exemptions when the public benefit outweighs potential detriments. This authorisation specifically addresses concerns related to competitors working together under the Competition and Consumer Act.