Labor commits to outlaw supermarket price gouging if re-elected
The government will commit to make it illegal for supermarkets to price-gouge customers if re-elected, several days after an inquiry they commissioned said it could not substantiate allegations the practice was taking place.
Prime Minister Anthony Albanese will announce plans on Sunday to establish a taskforce to advise on an “excessive pricing regime” to be policed by the consumer watchdog, on top of adopting the Australian Competition and Consumer Commission (ACCC) supermarket inquiry’s recommendations as a “first step”.
But the inquiry’s final report — which was handed down earlier this month after a year of hearings — said the watchdog was unable to conclude whether price gouging was taking place.
While it said Coles and Woolworths had little incentive to compete hard on prices, the watchdog stopped short of finding that grocery prices were “excessive” or that the two major players had a duopoly.
Anthony Albanese visited a Medicare clinic in Brisbane on the first day of the campaign, where the cost of living was a major focus. (ABC News: Ian Cutmore)
“Australian families deserve a fair price at the check-out and Australian farmers deserve a fair price for their goods,” Mr Albanese said.
The taskforce would include Treasury and the ACCC, along with other stakeholders who would be instructed to consider what laws other countries have and whether they could work in Australia.
It would be directed to report back to government after six months with a way forward.
Government instigated inquiry
In January last year, the federal government directed the ACCC to investigate whether price gouging was taking place as part of a wider probe into the supermarket sector, after allegations swirled during the pandemic and the subsequent cost-of-living crisis.
Labor said it would adopt the 20 recommendations of the inquiry, which included that supermarkets should be forced to publish pricing information, be subject to “minimum information requirements” for discount price promotions and notify customers of package size changes.
The announcement comes just days before the government’s new mandatory food and grocery code of conduct comes into force on April 1, which could see supermarkets fined up to $10 million for serious breaches.
Labor has also boosted the ACCC’s funding by more than $30 million over three and a half years so they can investigate and take enforcement action on the supermarket and retail sector.
The Coalition has vowed to take action on the supermarket giants, including to legislate break-up powers that could be used as a last resort if Coles and Woolworths were found to be taking advantage of customers.
Nationals leader David Littleproud had long agitated for divestiture powers, but the announcement of the plan in July angered some Liberal MPs who feared it would result in costly “lawfare”.
Labor has so far opted against going down the path of break-up powers after a review led by former Labor minister Craig Emerson warned against it, recommending instead a mandatory code of conduct.
“Our plan helps deliver more competition, fairer prices and better deals for Australians,” Treasurer Jim Chalmers.
“We’re delivering a better deal for families at the check-out and a better deal for farmers at the farm gate.”
Cost of living dominates start of campaign
The leaders of both major parties hyped policies they said would ease hip pocket pain at campaign events half an hour’s drive from one another in Brisbane on Saturday, as the five-week race to election day kicked off officially.
Coalition leader Peter Dutton focused on his plan to bring down power bills by introducing a gas reservation, while Labor spruiked their investments in healthcare access.
Peter Dutton spruiked his gas plans as he visited a brewery in Brisbane. (ABC News: Brendan Esposito)
After a stop in Mr Dutton’s electorate of Dickson, which he holds by a thin margin, Mr Albanese jetted north to Bundaberg where he toured a ginger beer brewery before stopping briefly south of the border in Bega.
He spent Saturday night back home in Canberra, before his first major television interview of the campaign — in studio with ABC’s Insiders on Sunday morning.
Meanwhile, the opposition leader visited a brewery in Brisbane before addressing campaigners in his own electorate and popping over to Moreton in southern Brisbane, where he met with members of the local Chinese community.
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