Targeting Inequitable Supermarket Pricing: ACCC’s Key Focus

By Jeff Gibbs

Producers and consumers alike are expressing deep concern over rising supermarket prices, prompting the Australian Competition and Consumer Commission (ACCC) to designate it as a top priority for the upcoming year.

Chair Gina CassGottlieb highlighted that competition within the supermarket sector, along with fair trading, consumer protection, and pricing, will be focal points for the commission’s efforts.

Speaking at a Committee for Economic Development of Australia event, CassGottlieb underscored the signifcant price hikes in food and groceries that have spurred worries among Australian consumers and farmers alike. Addressing media during a briefng on the commission’s priorities for 2024/25, she emphasized the watchdog’s acute awareness of these pricing concerns.

In response to the government’s directive for a 12-month inquiry into the sector, the ACCC aims to investigate claims by farmers alleging unfair treatment by supermarkets. CassGottlieb highlighted farmers’ grievances regarding their perceived inequitable share of profts within the supply chain and pledged to scrutinize key products from farm to shelf to discern where margins are being generated.

Of particular interest to the commission is examining evidence of enhanced price competition in regions with a greater presence of small and independent supermarkets. Furthermore, the interrogation of pricing mechanisms, including promotional discounts potentially skewed by loyalty program data, will be pivotal. Cass-Gottlieb cautioned against misleading consumers about value through promotional tactics that may disadvantage certain segments of the population.

Expanding beyond supermarkets, the ACCC’s concerns extend to the aviation sector, where issues of reliability and pricing persist. Emphasizing the importance of understanding how airline profts are reinvested to enhance consumer services, CassGottlieb highlighted the watchdog’s focus on consumer outcomes.

The ACCC’s broader priorities encompass combating “greenwashing” claims, ensuring competition in essential services, and enhancing compliance with consumer law across various sectors. Additionally, the commission is considering a mandatory code to combat scams swiftly, with penalties designed to deter systemic misconduct effectively.

Moreover, mobile software giants and credit providers are under scrutiny for their practices, alongside investigation into comparison websites suspected of bias and online infuencers’ disclosure of sponsorships. Through these multifaceted initiatives, the ACCC aims to safeguard consumer interests, promote fair competition, and foster transparency across industries.