Australia’s largest supermarkets will be banned from price gouging from July as the Albanese Government talks tough on making grocery bills cheaper.
A change to the regulations to explicitly make it illegal for “very large retailers” to charge excessive prices when compared to the supply cost as well as a “reasonable” margin will take effect in July as part of changes to the Food and Grocery Code.
If supermarkets are found in breach of the price gouging laws they can be fined the greater of either $10 million, three times the value of the benefit derived, or, if that value cannot be determined, 10 per cent of the company’s turnover during the preceding 12 months.
The Australian Competition and Consumer Commission — which will be boosted by a further $30 million in funding — will be responsible for policing excessive prices.
Federal Treasurer Jim Chalmers said the crackdown was aimed at reducing grocery bills.
“We’re cracking down on supermarket price gouging to help Australians get a better deal at the checkout,” he said on Saturday.
“This is all about getting a fairer go for families in their weekly shop.
“The ban will prohibit very large retailers from charging prices that are excessive when compared to the cost of the supply plus a reasonable margin.”
Dr Chalmers specifically named Coles and Woolworths as supermarkets that would be subject of the laws.
The pair were found in March by the Australian Competition and Consumer Commission’s supermarkets inquiry to not need to compete hard against each other for lowest prices.
The report did not find that grocery prices were “excessive” however.
Days after the report was released, Labor pledged to create the laws against price gouging as an election commitment.
Both Coles and Woolworths have repeatedly denied price gouging, arguing their prices are reasonable.
Dr Chalmers said the Government had been active in holding supermarkets to account.
“Whether it’s boosting funding for the regulator, banning price gouging or making the food and grocery code mandatory, we’re doing everything we can to ease pressure on Australians,” he said.
“One of the best ways to ease the cost of living for Australians is to help people get fairer prices at the checkout and that’s what this is all about.”
https://thewest.com.au/politics/federal-politics/federal-government-locks-in-price-gouging-ban-for-supermarkets-completing-election-promise-c-20989964
