ACCC takes Coles to court for dealings with small suppliers

THE competition watchdog has taken Coles to court over allegations of unconscionable conduct in dealing with hundreds of smaller suppliers.

The Australian Competition and Consumer Commission said it had investigated a 2011 program by Coles that aimed to extract $16 million in rebates.

Under the program, the watchdog alleges, Coles staff were told to threaten 200 suppliers if they did not agree to the terms.

Coles has released a statement saying it will defend the allegations, and that it is committed to negotiating fairly with suppliers.