The ACCC is proposing to grant authorisation for ResiLoop to establish and operate a voluntary, industry-led product stewardship scheme (the Scheme) that collects and recycles resilient flooring waste.
Resilient flooring is floorcoverings made from natural mineral fillers combined with materials such as vinyl, linoleum or rubber. Approximately 60,000 tonnes of resilient flooring waste is generated each year in Australia, with virtually all waste going to landfill.
ResiLoop has sought authorisation for six years, and the ACCC is seeking submissions in response to the draft determination by 30 August 2024 before making its final decision.
"Currently there is no industry-wide scheme for collecting and recycling resilient flooring waste in Australia. The Scheme is likely to result in environmental benefits by diverting resilient flooring waste from landfill to instead be reused," ACCC Commissioner Liza Carver said.
"Research and development into effective uses of resilient flooring waste, and pricing that better reflects the cost of disposal, is likely to promote proper disposal and greater recycling of resilient flooring under the Scheme."
The Scheme will be funded by a product levy of no more than 15 cents per square metre and applied to certain categories of resilient flooring products. The product levy will be referenced on the invoice of the product.
"The levy is unlikely to materially impact competition and represents a minimal proportion of the total retail cost of resilient flooring for consumers," Ms Carver said.
The ACCC has also granted interim authorisation for ResiLoop to commence the waste product scheme, which will allow ResiLoop to secure a foundation customer.
"Securing a foundation contract will promote confidence in the viability of the new product stewardship scheme and encourage further industry participation," Ms Carver said.
"It is important that ResiLoop considers ways to involve broad supply chain representation in the Scheme as well as being part of the advisory board."
ResiLoop will report annually on the Scheme's progress.
Further details about the application and how to make a submission are available on the ACCC's public register: ResiLoop Limited
Note:
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct would be likely to outweigh any public detriment.
The ACCC recently released a draft guide on sustainability collaborations and Australian competition law. The draft guide is designed to help businesses understand the competition law risks that may arise when contemplating working together to achieve positive environmental outcomes. The draft guide also explains how ACCC authorisation may be available to facilitate these agreements even if there are potential competition concerns.
