The ACCC has granted conditional authorisation for the major supermarkets to continue their soft plastics recycling collaboration until 31 July 2026. The Soft Plastics Taskforce, comprising Coles Group, Woolworths Group and Aldi Stores, will continue to process stockpiled soft plastics, and expand the in-store collection program.
The ACCC first authorised this collaboration granting interim authorisation in November 2022, following the collapse of REDcycle, which operated a nationwide soft plastics collection and recycling program.
“Our decision allows the supermarkets to continue working together to process the remaining REDcycle legacy stockpiles,” ACCC deputy chair Mick Keogh said.
Progress on reprocessing the stockpile is reportedly advancing as new recycling plants, such as iQ Renew’s purpose-built mechanical recycling facility for soft plastics, come on stream. Industry sources have told PKN that the stockpile is diminishing at a steady pace.
“Whilst it is encouraging to see that some progress is now being made as processing capacity improves, the ACCC expects that the supermarkets will continue to prioritise stockpile remediation efforts to prevent further delays.”
The ACCC has decided to impose 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. These reports and minutes will be published on the ACCC’s public register.
It is also a condition that all arrangements must immediately stop when the authorisation expires or is revoked.
Soft plastics collection and recycling, and the REDcycle ‘disappointment’, remains a significant issue for many consumers. Keogh said continued transparency about what progress the supermarkets are making in their processing of the soft plastic stockpiles is important.
The ACCC’s latest authorisation will also allow the soft plastics instore collection pilot program to continue operating in Victoria and New South Wales and expand to other areas. PKN understands from industry sources that the pilot in-store trials now involve over 200 stores for one the major supermarkets.
“It has been encouraging to see the pilot program expand under the current interim authorisation,” Keogh said.
“Whilst we recognise that further expansion needs to be in line with available processing capacity, the ACCC expects that the supermarkets will continue with some urgency to expand these operations so that more consumers have the option of recycling their soft plastics.”
The move has been welcomed by Soft Plastic Stewardship Australia (SPSA). Acting Co-CEO, Barry Cosier, told PKN that finding a solution to soft plastic collection is a priority. SPSA has been given a grant of $1 million to run collection trials in Queensland, with a multi-channel collection approach in various geographies, covering in-store, kerbside, and other community collection points.
Importantly, the ACCC’s authorisation is also subject to a new condition to prevent the major supermarkets from restricting recycling or logistic providers from supplying services to another customer.
Following the ACCC’s draft determination proposing to grant authorisation in December 2024, the organisation received a small number of submissions, including calls for broader involvement of the supermarkets in developing industry solutions to soft plastics.
The ACCC understands that any long-term soft plastics solution, whether in the form of an industry-led stewardship scheme or otherwise, is likely to be the subject of a separate, future application for authorisation and considers that the proposed conditions by interested parties are outside the scope of this authorisation.
The latest authorisation, announced on 27 February, does not include authorisation for any conduct of the supermarkets and their program partners with respect to any proposed stewardship scheme.
More information about the application, including a copy of the decision, is available on the ACCC’s website.
