The Australian Competition and Consumer Commission issued a draft determination proposing to grant authorization to establish a voluntary, industry-led scheme to collect and recycle soft plastic packaging from consumers, according to a Monday statement.

The competition watchdog is proposing to grant authorization for eight years and to include a reporting condition to ensure transparency of the performance of the scheme. It will be run by Soft Plastics Stewardship Australia.

Woolworths Group (ASX:WOW), Coles Group (ASX:COL), Aldi, Nestlé, Mars, and McCormick Foods are the initial members of this scheme.

The regulator previously authorized major supermarkets to recycle the material as part of the Soft Plastics Taskforce to process the stockpile left over from REDcycle and to restart in-store collection pilots until July 2026.