Labor has promised to make excessive pricing illegal if it is returned to power for a second term at the federal election on May 3.
Prime Minister Anthony Albanese promised to fix a gap in the nation’s competition and consumer protection framework.
“Australian families deserve a fair price at the checkout and Australian farmers deserve a fair price for their goods,” he said.
Laws to protect customers from companies engaging in the practice already exist in the United Kingdom, European Union, and dozens of states in the United States.
Labor would first implement recommendations from the Australian Competition and Consumer Commission’s supermarket inquiry report to improve transparency about prices, promotions and loyalty programs.
A task force would be set up to advise on introducing an excessive-pricing regime for supermarkets to be policed by the consumer watchdog.
The group would include Treasury, the ACCC and other experts who would consult and report to the federal government within six months.
NSW Farmers welcomed the pledge but warned more needed to be done to rein in the supermarket giants.
“While it’s encouraging to see politicians finally taking notice, addressing price gouging is just the beginning,” NSW Farmers president Xavier Martin said.
“We are also calling for improved transparency in the supply chain, structural reforms to change our competition landscape and divestiture powers to break up this oligopoly when they engage in anti-competitive behaviour.
“There’s a burning need for commodity specific Codes of Conduct, for example, in the poultry sector to drive fairer outcomes for farmers.”
Federal Nationals leader David Littleproud said the Prime Minister was “too weak to stand up to the big supermarkets”.
“You can do more reviews and change laws but unless there is a deterrent and a consequence for doing the wrong thing, then it’s business as usual for our supermarkets,” he said.
Mr Littleproud said the Coalition had a strong plan to crack down on major supermarkets and deliver fair prices, including tough new penalties by strengthening the Food and Grocery Code; increased powers for the ACCC to conduct random audits of major supermarkets; a supermarket commissioner to act as a confidential avenue for farmers and suppliers, to address the fear of retribution; and sector-specific divestiture powers as a last resort to put an end to instances of price gouging.
Coles and Woolworths have rejected claims of price-gouging, and have argued their margins are comparable to their peers in countries including Canada, the UK and the US.
– with AAP.
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