Metcash accused of unconscionable conduct by supplier

Less than two months after Coles agreed to settle unconscionable conduct claims, Metcash is embroiled in a legal stoush with a major supplier who has accused the food and liquor distributor of demanding excessive rebates and payments.

COFCO Distributors and Fasttrack Logistics, which are owned by a group of Indonesian businessmen, have accused Metcash of unconscionable conduct and using unfair tactics to force them to hand over more than AUD11 million in rebates and payments over the last six years.

In a statement of claim lodged in the Federal Court in Sydney in December, COFCO said it had paid Metcash AUD10.36 million in rebates on sales of AUD39.24 million over the six years to 30 June, 2014 and had been forced to pay AUD395,275 for “overseas study tours” for Metcash staff.