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ACCC set to green light soft plastics recycling scheme

Image of Woolworths storefront.
The consumer watchdog has proposed an eight-year authorisation of the program.

A draft determination proposing the authorisation of a voluntary, industry-led scheme to collect and recycle soft plastics has been issued by the Australian Competition & Consumer Commission (ACCC).

The scheme, to be run by Soft Plastics Stewardship Australia (SPSA), will aim to increase the collection and recycling of soft plastic packaging from consumers, including shopping bags and food wrappers. 

Woolworths, Coles, Aldi, Nestle, Mars and McCormick Foods are some initial members of the initiative.

The ACCC had previously approved major supermarkets to be part of the Soft Plastics Taskforce to process leftover soft plastic stockpiles from Redcycle and to restart in-store collection pilots until next July. 

“We believe the proposed scheme will result in an environmental benefit as it aims to take over and expand the current in-store collection and kerbside pilots for recycling soft plastic packaging, meaning some soft plastics are likely to be diverted from landfill,” said ACCC deputy chair Mick Keogh.

“While we know that soft plastic recycling has faced many challenges in Australia, we consider that the SPSA scheme is an important stepping stone to expanding collections and recycling.”

The ACCC stated that the public environmental benefits from this scheme outweigh any potential detriment to competition. 

The consumer watchdog has proposed an eight-year authorisation of the program, including a condition that ensures that there are no exclusive contracts with processors and one that requires reporting on its performance to ensure transparency. 

The ACCC has allowed the SPSA interim authority to engage in part of the conduct, including the sharing of operational information and data to initiate the transfer of arrangements from the Soft Plastics Taskforce to SPSA. 

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