ACCC Grants Conditional Approval for Soft Plastics Recycling

The Australian Competition and Consumer Commission (ACCC) has granted conditional approval for Coles, Woolworths, and ALDI to continue recycling stockpiled soft plastics and operating the in-store collection pilot until 31 July 2026.

Following the collapse of REDcycle, the ACCC initially granted interim approval in November 2022. ACCC Deputy Chair Mick Keogh stated that while progress is being made, supermarkets must prioritise clearing stockpiles and maintain transparency through quarterly reports published on the ACCC’s register.

The authorisation allows the in-store pilot to continue in Victoria and New South Wales with potential expansion. However, supermarkets must not restrict recycling or logistics providers from serving other customers. Feedback on the authorisation was mixed, with some advocating for broader industry involvement.

This approval does not cover any future industry-led stewardship schemes, which would require a separate application.

REDcycle, an industry-led programme, operated in-store soft plastics recycling but suspended operations in November 2022 due to processing partner limitations. Coles and Woolworths halted collections soon after. Seeking a solution, they approached the ACCC, leading to the formation of the Soft Plastics Taskforce.

By February 2023, supermarkets assumed responsibility for approximately 11,000 tonnes of stockpiled plastics after REDcycle’s parent company became insolvent. The ACCC granted a 12-month authorisation in June 2023, followed by an interim extension in July 2024.

The latest ACCC report from January 2025 indicates remaining stockpiles: Victoria (2,200 tonnes), New South Wales (1,700 tonnes), and South Australia (3,500 tonnes), with processing completed in Queensland and Western Australia. The pilot programme has collected 45 tonnes of plastics from 107 stores in New South Wales and Victoria as of December 2024.

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