Metcash accused of unconscionable conduct by supplier
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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.
Questions & Answers
Q.What is the core accusation made against Metcash?
What is the core accusation made against Metcash?
Metcash is accused of unconscionable conduct and using unfair tactics by COFCO Distributors and Fasttrack Logistics. They claim Metcash demanded excessive rebates and payments totalling over AUD11 million.
Q.How much did COFCO pay in rebates to Metcash over the six-year period?
How much did COFCO pay in rebates to Metcash over the six-year period?
COFCO paid Metcash AUD10.36 million in rebates on sales of AUD39.24 million over the six years to 30 June, 2014. This forms a significant part of the total payments being disputed.
Q.When and where was the statement of claim lodged by COFCO?
When and where was the statement of claim lodged by COFCO?
The statement of claim was lodged in the Federal Court in Sydney in December. This formal legal action initiated the dispute between the parties.
Q.Who owns COFCO Distributors and Fasttrack Logistics?
Who owns COFCO Distributors and Fasttrack Logistics?
COFCO Distributors and Fasttrack Logistics are owned by a group of Indonesian businessmen. This ownership detail clarifies the identity of the entities making the accusations against Metcash.
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