Media release – Nick McKim, Greens’ Senator for Tasmania, 7 May 2024
Senate inquiry calls for price gouging to be made illegal and for supermarket divestiture powers
The Greens-led Senate Select Committee on Supermarket Prices has recommended making price gouging illegal, as well as introducing divestiture laws to create powers to break up Australia’s supermarket duopoly.
“This is a landmark report with serious proposals to tackle the price of food, and the profiteering that has done so much harm to the people of Australia,“ Greens Economic Justice spokesperson and Committee Chair Senator Nick McKim said.
“The committee has produced concrete steps that would tackle these problems head on.”
“Chief among these is the recommendation that price gouging be made illegal.”
“This would mean that corporations couldn’t just arbitrarily increase prices without facing consequences from the courts.”
“This would be a significant new power to stop unreasonable pricing that has been rampant for years because of a lack of competition.”
“The committee has also recommended divestiture powers for the supermarket sector, which would give the Federal Court the power to break up corporations when they abuse their market power or act unconscionably.”
The committee’s other recommendations include:
The establishment of a Prices and Competition Commission to examine and monitor prices and price setting across the economy and require supermarkets to publish historical pricing data.
That the Food and Grocery Code of Conduct be made mandatory with significant penalties for breaches, and be expanded to greenlife industries and any retailer that stocks food and grocery products
That the ACCC be given powers to investigate land banking and unfair trading practices.
Supermarkets be made to adopt mandatory standards for unit pricing, and notify customers of changes in sizes or prices of products, to help prevent shrinkflation
For the Government to standardise discount and promotional terms, to prevent supermarkets promoting fake discounts.
For the Government to back stronger health and safety standards for supermarket employees
Further investigation of the role of multinational food manufacturers in price increases in Australia
That the National Food Waste Strategy is updated to require supermarkets to publish data on food waste and consider whether unrealistic cosmetic standards are adding to waste.
“The committee has heard the devastating evidence on the effects of price gouging and how hard it is hitting people,” Senator McKim said.
“The Greens established this inquiry to bring food prices down and that is exactly what our recommendations will do.”
“We’ve heard from farmers and suppliers about how the massive market power of Coles and Woolworths is allowing them to act unconscionably.”
“But without the ability to break up the duopoly, our market will remain skewed towards the interests of a few powerful players and nothing will change.”
“There is a Bill before Parliament right now to create divestiture powers. The only thing standing in its way is the Labor Party.”
The full report can be found here.
Media release – Tammy Tyrrell, independent Senator for Tasmania, 7 May 2024
TYRRELL CALLS FOR MORE SUPERMARKET COMPETITION IN TAS
Senator Tammy Tyrrell, Independent Senator for Tasmania, is calling on the Federal Government to look at ways to increase supermarket competition in Tasmania, off the back of an inquiry into Supermarket Prices.
The Senate Select Committee on Supermarket Prices released their report today.
The inquiry heard from a number of Tasmanians, including farmer and former Woolworths supplier, Mike Badcock, and Karen Brock, of Brocklands Nursery.
Senator Tyrrell says Tasmanians aren’t reaping the benefits of lower prices because of a lack of competition in the supermarket industry.
“Evidence at the inquiry was clear. When an ALDI comes to a community, people see prices at their local Woolies and Coles go down. More competition leads to better prices, and Tasmanians are missing out because we’re dominated by the two major supermarkets.
“ALDI said it’s too hard basket to set up shop in Tasmania. So I’ve recommended that the Federal Government look at ways to help get other players into Tasmania and regional areas. And they should work with State Governments to make that happen.
More broadly, Senator Tyrrell said that the report was thorough in addressing the issues around Coles and Woolworths dominance of the market in Tasmania.
“Tasmanians want to know what these recommendations will do for them. We’ve recommended rules on how sales are advertised – so no more discounts that aren’t really discounts. We’ve also recommended setting up a Pricing Commission, which will make supermarkets publish historical pricing data. So you’ll be able to see if something has gone up by $10 in three years.
“I know how tough people are doing it right now. I have friends and family who are working full time and struggling with the price at the checkout. I’ve been there too – I know what it’s like to go without a meal so your kids could be fed. People shouldn’t have to be making those choices. I’m hopeful the work I’ve done on this committee can make things better for Tasmanians when it comes to pain at the checkout.”
