When Jeff Kennett dobbed Coles into the competition regulator over false "baked fresh" bread claims two years ago, he had no idea he would end up playing the role of King Solomon, adjudicating between Australia's second-largest food retailer and its smallest suppliers.
The former Victorian premier has ordered Coles to repay more than $12.3 million to small food and grocery suppliers who were forced to pay extra rebates to join a new supply chain program, or fined for "crimes" such as late deliveries and spoilage in Coles stores.
The $12.3 million in refunds and compensation comes on top of a $10 million penalty Coles was ordered to pay by the Federal Court last December for "serious, deliberate and repeated" misconduct towards suppliers. It comes two months after Coles was fined $2.5 million for passing off par-baked bread as freshly baked in-store to consumers such as Mr Kennett .
The high cost of "down, down, prices are down". Woolworths take note.
No doubt Coles will appeal.
