The Albanese Government will give the consumer watchdog an additional $30 million to crack down on misleading and deceptive pricing practices and unconscionable conduct in the supermarket and retail sector.
The funding will help the Australian Competition and Consumer Commission (ACCC) conduct more investigations, enforcement, and monitoring.
This latest push by the federal government follows last week’s announcement that the ACCC is taking legal action against Coles and Woolworths, for allegedly misleading customers by discount pricing claims on hundreds of everyday products.
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Treasurer Jim Chalmers will also work closely with states and territories to reform planning and zoning regulations, which he says will help boost competition in the supermarket sector by opening up more sites for new stores.
A damning interim report handed down by the ACCC last week, revealed Australia’s two dominant grocery chains, Woolworths and Coles, have interests in more than 150 unrealised development sites.
The ACCC is now investigating whether the practice known as “land banking” is hurting competition in the sector, as prime sites are prised away from rivals.
The Albanese Government is taking a big stick to the supermarkets as it is popular with voters during this protracted cost-of-living crisis, fuelled by years of high inflation, a housing crisis and global economic uncertainty.
“We are announcing a crackdown on dodgy supermarket practices,” Prime Minister Anthony Albanese said.
“We don’t want to see ordinary Australians, families and pensioners being taken for a ride by the supermarkets, and we’re taking steps to make sure they get a fair go at the checkout.”
The government has so far resisted calls from the Coalition and Greens to introduce divestiture laws, powers that could be used to sell off stores to rivals to generate more competition. The government says such laws would risk investment in Australia.
“We’re taking decisive action to help Australians get fairer prices at the supermarket checkout, in stores and online,” Treasurer Jim Chalmers said.
“More funding for the ACCC will help to make pricing fair, boost competition and make sure that there are significant consequences for supermarkets who do the wrong thing.”