The Australian Competition and Consumer Commission (ACCC) has granted authorisation to Coles Group, Woolworths Group, and ALDI Stores to continue their collaboration on recycling stockpiled soft plastics until 31 July 2026.

However, the authorisation comes with specific conditions aimed at addressing the backlog left by the collapse of the REDcycle program.

The authorisation allows the continuation of the pilot in-store collection program for soft plastics in Victoria and New South Wales, with the potential for expansion to other areas. This initiative was first granted interim authorisation by the ACCC in November 2022, following the suspension of REDcycle, a nationwide soft plastics collection and recycling program. REDcycle ceased operations in November 2022 after its recycling partners stopped accepting soft plastics.

Under the new authorisation, the supermarkets are required to provide quarterly progress reports and meeting minutes of the Soft Plastics Taskforce to the ACCC. These documents will be made available on the ACCC’s public register. The authorisation includes a condition that all arrangements must cease immediately upon the expiry or revocation of the authorisation.

A new condition has been introduced to prevent the major supermarkets from restricting recycling or logistic providers from supplying services to other customers. The ACCC received a small number of submissions regarding the authorisation, with some expressing support and others calling for broader supermarket involvement in industry solutions.

The ACCC's authorisation does not cover any proposed stewardship scheme by the supermarkets and their program partners. The Soft Plastics Taskforce, chaired by the Department of Climate Change, Energy, the Environment and Water, was established following the ACCC's interim authorisation in November 2022.

As of 22 January 2025, Victoria has approximately 2,200 tonnes, New South Wales 1,700 tonnes, and South Australia 3,500 tonnes of soft plastic stockpiles remaining. Processing of stockpiles in Queensland and Western Australia has been completed. By the end of December 2024, 45 tonnes of soft plastics were collected through the in-store collection pilot program, which is operational in 107 stores across New South Wales and Victoria.

ACCC Deputy Chair Mick Keogh said: "Our decision today allows the supermarkets to continue working together to process the remaining REDcycle legacy stockpiles." He further stated, "Whilst it is encouraging to see that some progress is now being made as processing capacity improves, the ACCC expects that the supermarkets will continue to prioritise stockpile remediation efforts to prevent further delays.

"This is a significant issue for many consumers, so continued transparency about what progress the supermarkets are making in their processing of the soft plastic stockpiles is important... It has been encouraging to see the pilot program expand under the current interim authorisation.

"Whilst we recognise that further expansion needs to be in line with available processing capacity, the ACCC expects that the supermarkets will continue with some urgency to expand these operations so that more consumers have the option of recycling their soft plastics."