As the cost of living continues to soar, Australians are feeling the pinch at the checkout. But while everyday people struggle to make ends meet, major corporations are reportedly raking in record profits—often by inflating prices far beyond what’s fair. This practice, known as price gouging, has sparked public outrage and political action, with new calls to make it illegal.
In a bold move that could potentially reshape the supermarket landscape, the Greens have announced a plan that could save consumers from the sting of outrageous pricing.
The party has proposed a major policy that aims to make price gouging illegal, a change that could have significant implications for the country’s supermarket giants.
The Greens’ plan involves the establishment of a Prices Commission (PsC), a watchdog entity with the authority to monitor and regulate pricing practices across Australian supermarkets and the broader economy. This commission would have the power to impose hefty fines or even break up companies found guilty of price gouging.
Under the Greens’ proposal, the PsC would work in tandem with the Australian Competition and Consumer Commission (ACCC), with additional resources provided to strengthen the ACCC’s ability to investigate and act on referrals from the PsC.
The Greens envision the PsC as a commonwealth entity tasked with examining and monitoring the price-setting practices of corporations, with staffing levels on par with the existing Productivity Commission.
Furthermore, the Greens have pledged to add 20 full-time ACCC jobs that will be tasked to investigate referrals from the PsC. They also propose the use of divestiture powers and price gouging laws to dismantle duopolies and prohibit exploitative pricing strategies.
This proposal comes at a time when the cost of living is a pressing concern for many Australians. A recent Freshwater poll indicated that grocery prices are at the top of the list of cost-of-living worries, even surpassing concerns about rent and power bills.
Greens leader Adam Bandt has criticised the federal government for its ‘inaction’ on the rising cost of living, stating that ‘in a wealthy country like ours, everyone should be able to afford the basics, but people are getting smashed at the checkout.’
Bandt’s comments reflect a growing sentiment that the government needs to do more to address the financial pressures facing everyday Australians.
Meanwhile, Senator Nick McKim, the party’s economic justice spokesperson, has pointed out that anti-competitive schemes have allowed grocery giants like Coles and Woolworths to dominate the market and make substantial profits at the expense of consumers and workers.
McKim asserts that while the major parties have been complacent, the Greens are prepared to challenge these corporations head-on.
The timing of this proposal is particularly noteworthy, as it follows the ACCC’s announcement of legal action against Coles and Woolworths for alleged breaches of Australian Consumer Law. The watchdog accuses the supermarket chains of misleading consumers with discount pricing claims on hundreds of products between February 2022 and May 2023.
In response to the ACCC’s claims, Woolworths has stated that it is reviewing the allegations and remains committed to providing value to customers. Meanwhile, Coles has indicated that it will defend against the ACCC case.
If this proposal from the Greens were to be implemented, it could herald a new era of fairness in pricing for consumers. The prospect of a Prices Commission actively monitoring and regulating the market could deter price gouging and ensure that Australians are not overpaying for their groceries.
With the next federal election on the horizon, policies that promise to tackle the high cost of living could sway the electorate and potentially change the political landscape.
What do you think about this proposal to outlaw price gouging? Do you believe it will make a difference in your weekly shopping bill? Share your thoughts and experiences with the YourLifeChoices community in the comments below.
Also read: Coles and Woolworths respond to sneaky pricing accusations
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Supermarkets are not a public service. They are a business and the purpose of business is to make as much money as possible for its owners. The correct price to buy something is the lowest price you can get it for and the correct price to sell something is the highest price you can get for it. There is no such thing as price gouging. Any controls on the prices charged by non-government businesses is socialism.
To GAZ…. OK then, bring on Socialism!!!… Because the supermarkets virtual duopoly IS guilty of price gouging as a virtual monopoly for certain essential goods,