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Gippsland families struggle at supermarkets as PM backtracks on ACCC powers to tackle price gouging

Families continue to struggle with rising supermarket prices as the PM retreats on promised ACCC powers, despite the Coalition's push for tougher penalties and divestiture measures to curb price gouging.

By news@gippsland - 15th January 2025 - Back to News

Families will head to the supermarkets this year still struggling to pay at the checkout, since the Prime Minister backtracked after promising to give more powers to the Australian Competition and Consumer Commission (ACCC) to intervene in supermarket price gouging. Exactly one year ago today (Thursday 16 January), the Prime Minister pledged "if the ACCC asks for more powers, then my government will give it to them."

The Coalition's 2024 Bill seeks to empower the ACCC with audits and divestiture powers, ensuring supermarket compliance and fairness for families and farmers

Supermarket reform stalled

ACCC chief Gina Cass-Gottlieb then later said she would welcome new powers to break up big business including supermarkets and that those powers would be "useful to have in the toolkit". "The Prime Minister one year ago said he would give the ACCC whatever powers they asked for, but then fell silent once the ACCC chief said powers to break up the supermarkets would be useful," Mr Littleproud said.

"The ACCC would welcome divestiture powers - so why isn't the Prime Minister backing the idea, especially as families are now being forced to pay off their Christmas credit cards?," Mr Littleproud added.

The Coalition introduced the Competition and Consumer Amendment (Tougher Penalties for Supermarket and Hardware Businesses) Bill 2024 in November last year. The Private Members' Bill could be passed through Parliament in the first sitting week of 2025, if Labor backs the Bill and supports families and farmers.

Fairness for supermarkets

The Bill is aimed at restoring fairness and will give the ACCC powers to undertake audits of supermarkets to ensure the supermarkets are compliant with the Code. It will also establish sector-specific divestiture powers - in the hands of the ACCC and the courts, not politicians - as a last resort to address the behaviour of supermarkets.

"Divestiture powers introduced by the Coalition will come with appropriate public interest safeguards. We will also have infringement penalty notices, or on the spot fines, of $2 million, compared with Labor's measly amount of $198,000, which could be pulled out of a till at any city supermarket and does nothing to change culture," Mr Littleproud said.

Pictures from David Littleproud MP Facebook page.

Source: http://gippsland.com/

Published by: news@gippsland.com