In a major announcement ahead of the federal election, the Labor government has vowed to make it illegal for supermarkets to engage in price gouging. Prime Minister Anthony Albanese is set to unveil plans this Sunday that include establishing a dedicated taskforce to investigate and regulate supermarket pricing practices—a move aimed at protecting Australian families amid rising living costs.
Following Through on ACCC Recommendations
The promise comes on the heels of an extensive inquiry by the Australian Competition and Consumer Commission (ACCC), which, after a year of hearings, was unable to conclusively determine whether price gouging was taking place in Australia’s supermarket sector. Despite the ACCC’s inability to substantiate allegations, its report made 20 recommendations—including increased price transparency measures—that Labor now plans to adopt as a critical first step.
“Australian families deserve a fair price at the check-out and Australian farmers deserve a fair price for their goods,” Mr Albanese said. “We are committed to ensuring that consumers have access to clear and transparent pricing information.”
Taskforce to Chart the Way Forward
Under the new proposal, a taskforce comprising members from the Treasury, ACCC, and other key stakeholders will be established. The group is expected to review overseas laws on excessive pricing and report back within six months on the best path forward for Australia. This initiative aims to create an “excessive pricing regime” that would empower the consumer watchdog to monitor and enforce fair pricing practices in the supermarket industry.
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Labor has reiterated its support for these measures as part of its broader strategy to tackle the cost-of-living crisis—a strategy that has already seen a boost in funding for the ACCC, with an extra $30 million over three and a half years earmarked for regulatory enforcement in the retail sector.
Industry Response and Political Implications
The announcement has stirred debate among industry experts and political commentators. While some praise the move as a necessary intervention to protect consumers, others argue that it risks disrupting market dynamics. Supermarket giants have long maintained that their pricing structures reflect competitive pressures and rising operational costs, and have welcomed the ACCC’s findings that stopped short of declaring the current pricing “excessive.”
Meanwhile, opposition leader Peter Dutton has already signalled his own commitment to addressing the cost-of-living crisis, though his focus remains on measures like halving the fuel excise—a proposal he plans to detail further in his upcoming budget reply speech.
A Pivotal Moment in the Election Campaign
With the federal election now less than five weeks away, the issue of supermarket pricing has taken center stage as part of a broader narrative on affordability and fair trade practices. Labor’s promise to outlaw price gouging is seen as an attempt to distinguish its policy platform from that of the Coalition, which has been criticized for its perceived inaction on consumer protection.
The announcement is expected to resonate with voters who have felt the pinch at the grocery store, as small price differences add up over time. Consumer advocacy groups have welcomed the initiative, urging the government to implement robust measures that can make a tangible difference in the daily lives of Australians.
Looking Ahead
As Labor prepares for the upcoming election, all eyes will be on how the government translates its promise into actionable policy. The establishment of the taskforce and the subsequent review of international models for regulating supermarket pricing are seen as critical steps in creating a more competitive and transparent retail market.
While the ACCC’s inquiry could not definitively prove that price gouging is widespread in Australia’s supermarkets, Labor’s commitment signals a determination to address consumer concerns head-on. With the cost-of-living crisis at the forefront of voter priorities, this policy could prove to be a pivotal factor in the coming election.
