Senate Inquiry Calls for Legislation to Combat Price Gouging and Break Up Supermarket Duopoly in Australia
Source: The DairyNews
A comprehensive Senate inquiry report released on Tuesday has urged the implementation of strict laws against retail price gouging and proposed divestiture measures to dismantle the duopoly of Australia's leading supermarkets, Coles and Woolworths.
The report, led by The Greens and stemming from the Senate Sel ect Committee on Supermarket Prices Inquiry, includes 14 recommendations aimed at fostering competition, enhancing legislation, and fortifying regulations to address escalating food prices and power imbalances in the supermarket sector.
Prompted by concerns over the national cost-of-living crisis and its impact on households, the inquiry has also highlighted the detrimental effects of supermarket profiteering on farmers and the sustainability of Australian fresh produce. Jolyon Burnett, the National Farmers Federation horticulture chair, expressed strong support for the report's call to enforce the Food and Grocery Code more stringently, with significant penalties for violations. He pointed out the predatory pricing practices that exploit fresh produce's perishability and the undue costs imposed on growers.
The inquiry report suggests that the currently voluntary code should be made compulsory and broadened to include the green-life industries and all food and grocery retailers. Joanna Cave, Chief Executive of Greenlife Industry Australia, lauded the inclusion of Bunnings in the regulatory framework, envisioning a fairer trade relationship for growers.
A major proposal fr om the committee is the establishment of a prices and competition commission to oversee and analyze price setting across various sectors, further advocating for supermarkets to disclose historical pricing data to enhance transparency.
Additionally, the report recommends empowering the Federal Court with the authority to disband corporations if they are found to misuse their market power. It also calls for mandatory standards on unit pricing to prevent misleading promotions and requires supermarkets to publish food waste data and allow scrutiny into land banking and unfair practices.
Nick McKim, Committee Chair, emphasized the urgent need to address profiteering issues that harm consumers and suppliers alike, highlighting the necessity to outlaw price gouging officially.
This groundbreaking report seeks to recalibrate the competitive landscape in the Australian supermarket industry, aiming to protect consumers and suppliers from the overwhelming market influence of major players like Coles and Woolworths.
Prompted by concerns over the national cost-of-living crisis and its impact on households, the inquiry has also highlighted the detrimental effects of supermarket profiteering on farmers and the sustainability of Australian fresh produce. Jolyon Burnett, the National Farmers Federation horticulture chair, expressed strong support for the report's call to enforce the Food and Grocery Code more stringently, with significant penalties for violations. He pointed out the predatory pricing practices that exploit fresh produce's perishability and the undue costs imposed on growers.
The inquiry report suggests that the currently voluntary code should be made compulsory and broadened to include the green-life industries and all food and grocery retailers. Joanna Cave, Chief Executive of Greenlife Industry Australia, lauded the inclusion of Bunnings in the regulatory framework, envisioning a fairer trade relationship for growers.
A major proposal fr om the committee is the establishment of a prices and competition commission to oversee and analyze price setting across various sectors, further advocating for supermarkets to disclose historical pricing data to enhance transparency.
Additionally, the report recommends empowering the Federal Court with the authority to disband corporations if they are found to misuse their market power. It also calls for mandatory standards on unit pricing to prevent misleading promotions and requires supermarkets to publish food waste data and allow scrutiny into land banking and unfair practices.
Nick McKim, Committee Chair, emphasized the urgent need to address profiteering issues that harm consumers and suppliers alike, highlighting the necessity to outlaw price gouging officially.
This groundbreaking report seeks to recalibrate the competitive landscape in the Australian supermarket industry, aiming to protect consumers and suppliers from the overwhelming market influence of major players like Coles and Woolworths.
