Small businesses exempt from competition law when collectively bargaining with suppliers

Small businesses can now collectively bargain with their suppliers over issues such as prices and conditions without first needing the consumer watchdog’s approval.

The Australian Competition and Consumer Commission’s (ACCC) class exemption kicked in last Thursday, allowing 97% of businesses to collectively negotiate with their suppliers, processors and customers without the ACCC’s authorisation.

Previously, businesses needed to apply for exemptions that were granted on a case-by-case basis through an ACCC authorisation process.

This new class exemption removes the need for most small businesses to use that process, reducing the time and cost of making negotiating contracts.

The small business ombudsman Bruce Billson said the new arrangement will significantly help small businesses to collectively negotiate with the larger companies that buy their products.