UPDATE: The Albanese Government has just announced a ban on price gouging by Australia’s largest supermarkets, set to take effect in July 2023. This decisive move aims to tackle soaring grocery bills and fulfill an election promise to make food more affordable for families across the nation.
Under the new regulations, “very large retailers” will be prohibited from charging excessive prices compared to supply costs plus a reasonable margin. If found in violation, supermarkets could face fines reaching the greater of $10 million, three times the value of the benefit derived from the gouging, or 10% of the company’s turnover from the past year.
Federal Treasurer Jim Chalmers emphasized the government’s commitment to protecting consumers, stating, “We’re cracking down on supermarket price gouging to help Australians get a better deal at the checkout.” Chalmers specifically identified Coles and Woolworths as key targets of this crackdown, highlighting ongoing concerns about their pricing practices.
The Australian Competition and Consumer Commission (ACCC) will oversee the enforcement of these new laws, backed by an additional $30 million in funding to strengthen their regulatory capabilities. Chalmers noted that the government is taking multiple steps to alleviate the cost of living for Australians, including revising the Food and Grocery Code to make compliance mandatory.
This regulatory initiative follows a report from the ACCC’s supermarkets inquiry, which indicated that while Coles and Woolworths did not compete vigorously on price, it did not label their pricing as “excessive.” Nevertheless, the government’s swift action signals a strong response to public dissatisfaction with rising grocery costs.
Both supermarket giants have consistently denied allegations of price gouging, asserting that their pricing remains fair and competitive. However, the new legislation aims to hold them accountable and ensure that Australian families are not burdened with inflated prices at the checkout.
As the implementation date approaches, consumers are urged to stay informed about their rights and the changes in pricing practices at major supermarkets. The government’s proactive stance seeks to foster a fairer shopping environment, making it essential for families to benefit from reduced grocery costs.
What’s Next? Watch for updates as the July deadline nears and the ACCC ramps up its enforcement efforts. The success of this ban could reshape the grocery landscape in Australia, directly impacting the daily lives of millions.
Stay tuned as we continue to cover this critical issue affecting Australian households.
