Potential models of reform include excessive price laws established in the EU, the UK, and many US states.
Workers have pledged to ban price gooing if they are re-elected through the supermarket’s overprice regime.
“Australian families deserve fair price Check out and Australian farmers deserve fair price For their goods,” Prime Minister Anthony Albanese said.
On January 25, 2024, the federal government issued an investigation into excessive pricing and directed the Australian Competition and Consumer Commission (ACCC) to conduct the investigation.
According to the report, the three supermarks increased the average profits of products over the past five fiscal years, particularly due to the brand’s home and packaging food categories.
Plan to ban price gouging
Potential models of reform include the excess price laws established in the European Union, the UK, and 30 US states.
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Andrew Lee said the Assistant Minister for Competition was time for Australians to have the same excessive pricing protections as foreign consumers.
A task force, which includes ACCC and the Ministry of Finance, will be established to advise on the implementation of reforms.
The task force is expected to report to the government within six months in the proposed course of action.
“We provide better deals for families at checkout and better deals for farmers at farm gates,” said Jim Chalmers, treasurer.
“Our plan will help Australians achieve more competition, fairer prices and better deals.”
Recommendations from the ACCC and other political parties
ACCC recommended that large supermarket chains publish prices online and establish the importance of the new merger law and concrete treatment of supermarket acquisitions.
Additionally, the ACCC advised that supermarkets should be more transparent about weekly bids on the process of selecting a company to supply products and rebates with suppliers.
The report also found that groceries prices are increasing remotely, but this is due to logistics costs, and some stores may not offer price labels.
ACCC recommended that all stores display prices in-store and advised establishment fair trading institutions to monitor price displays and complaints information.
Union and Green aim to understand supermarket prices through the sale law.
“Now is the time when people’s profits come first over the profits of businesses,” McKim said.
