Woolworths has admitted tapping suppliers for extra payments after finding a USD 53 million hole in 2014 profits, but says its demands were consistent with the "ordinary nature" of retailer and supplier relationships.
Australia’s largest retailer has denied allegations by the Australian Competition and Consumer Commission it acted unconscionably by demanding payments it was not entitled to and by taking advantage of its superior market power to try to force hundreds of suppliers to pay more than USD 60 million in extra payments.
In documents filed in the Federal Court on Tuesday, Woolworths denied it had contravened Australian Consumer Law and suggested Section 21 of the law did not apply as some of the suppliers were listed public companies.