The Australian Competition and Consumer Commission has been advised that Coles Supermarkets has withdrawn its notification* lodged in relation to in-store demonstrations, ACCC Chairman, Mr Graeme Samuel, announced today.
In January 2005, Coles notified the ACCC of an arrangement requiring suppliers of products to Coles and Bi-Lo supermarkets to use the services of CPM Australia Pty Ltd when carrying out product demonstrations in certain Coles and Bi-Lo stores. The conduct was to be introduced gradually, with half of all Coles and Bi-Lo stores to be affected over three years.
The ACCC had been conducting comprehensive market inquiries to test the public benefits claimed by Coles.
To date, little information had been provided by Coles to substantiate the efficiency and other benefits said to flow from the proposed conduct. This was not withstanding strong opposition to the conduct and the detriments that were likely to flow to some of Coles' suppliers from a loss of choice of demonstrator and potential marketing cost increases.
However, in light of the Coles' withdrawal, the ACCC will not be taking any further action in this matter.