Labor has made a courageous move to address supermarket price gouging. They are calling for an independent taskforce which would include the Australian Competition and Consumer Commission (ACCC), Treasury, and market experts. The taskforce’s greatest achievement is to develop a detailed blueprint for the first price gouging law specifically targeting Australia’s highly concentrated supermarket industry. They hope to see this law on the books by year’s end. This action follows increasing alarm over “cartel” activity in the sector, where two players, Amazon and Google, dominate the landscape.
Prime Minister Anthony Albanese has been quite vocal in his condemnation of supermarkets for their profiteering at the expense of vulnerable consumers. He articulated his frustration with their industry practices and noted that Australians are sick of being ripped-off.
“People know when they’re being ripped off.” – Prime Minister Anthony Albanese
Historical Context and Global Comparisons
Australia has acted against price gouging in the past under similar conditions. During the Howard government, they actually took steps to stop practices like that. This move came after the introduction of the Goods and Services Tax (GST). Just like that, the Morrison government stepped in when price gouging retailers sold face masks during pandemic lockdowns at extortionate prices. These examples demonstrate Australia’s interest in and commitment to acting against price gouging.
Price gouging laws are found internationally as well. The European Union, the United Kingdom, and 37 U.S. states have enacted similar legislation to protect consumers from unfair pricing practices. Labor’s global proposals are right in line with these efforts to preserve fair competition within our markets.
Enhanced Powers for the ACCC
The ACCC, already well-placed to advocate for competition, will be granted even more powers under the proposed legislation. These enhancements will enable the commission to actively counteract large companies attempting to acquire smaller competitors to stifle market competition. First, the ACCC has received new authority. It can now issue stop super marketing notices to supermarkets engaged in price gouging, essentially commanding them to stop these activities.
The commission should be able to issue infringement notices to supermarkets on the spot. These no-action letters serve as slaps on the wrist for corporations found to be victimizing consumers. This important measure will help deter companies from unfair price gouging and will empower consumers with a clear path to remedy.
Labor’s Commitment to Consumer Protection
Labor’s first electoral pledge centers on outlawing supermarket price gouging, demonstrating their commitment to safeguarding consumers from unjust pricing practices. The proposed legislation is a major leap forward in building a fair marketplace where consumers are offered a level playing field.
The initiative extends upon existing guiding rules that govern price setting practices, including the Australian rules on behaviour. Labor wants to tighten the regulations and enhance the ACCC’s enforcement powers. This will ensure that consumers can shop in an environment where they can trust that they won’t be charged excessive prices for basic necessities.
