Government to Tackle Supermarket Pricing Concerns with Taskforce and Inquiry Recommendations

Government to Tackle Price Gouging in Supermarkets

The Australian government has announced plans to establish a taskforce to advise on an "excessive pricing regime" in supermarkets. This comes after an inquiry commissioned by the government found insufficient evidence to substantiate allegations of price gouging.

Prime Minister Anthony Albanese stated that the taskforce would include representatives from Treasury, the Australian Competition and Consumer Commission (ACCC), and other stakeholders. They will be tasked with considering laws implemented in other countries and their potential applicability in Australia. The taskforce is expected to report back to the government within six months with recommendations for moving forward.

The government has also committed to adopting the 20 recommendations outlined in the ACCC supermarket inquiry. These recommendations include requiring supermarkets to publish pricing information, implement minimum information requirements for discount promotions, and notify customers of package size changes.

This announcement comes just days before the government's new mandatory food and grocery code of conduct comes into effect on April 1st. This code could result in fines of up to $10 million for supermarkets found to be in serious breach.

The government has also increased the ACCC's funding by over $30 million over three and a half years to enhance their ability to investigate and take enforcement action against the supermarket and retail sector.

Treasurer Jim Chalmers stated that the government's plan aims to deliver more competition, fairer prices, and better deals for Australians. He emphasized their commitment to providing a better deal for families at the checkout and for farmers at the farm gate.

The government's announcement follows a period of intense scrutiny of the supermarket sector, particularly during the pandemic and the subsequent cost-of-living crisis. The government's actions demonstrate their commitment to addressing concerns about potential price gouging and ensuring fairer pricing for consumers.