New report unveils jaw-dropping extent of price gouging

In an era where the cost of living is skyrocketing, a new report has unveiled a disturbing trend: major Australian businesses are allegedly exploiting struggling households through unfair pricing practices.

This comes as a federal inquiry into price gouging revealed that major supermarket chains may be overcharging customers struggling with the high cost of living.



The report, commissioned by the Australian Council of Trade Unions (ACTU), has shed light on the alarming extent of ‘dodgy’ pricing practices.

Economist Professor Allan Fels, former Chair of the Australian Competition and Consumer Commission (ACCC), has pointed out that rising prices are not merely a result of inflation but are also driven by corporate gouging and ‘profit pushing’.


compressed-marques-thomas-8vgsOVj0OfM-unsplash.jpeg
A report commissioned by ACTU revealed the extent of price gouging. Image source: Marques Thomas/Unsplash



Unfortunately, the cost of these unfair prices to the Australian public reached a staggering $100 billion per year.

'Australians are paying prices that are too high, too often,' Professor Fels said.



‘A significant part of the cost-of-living crisis has been caused by companies in uncompetitive markets taking advantage of their market power and relying on gaps in government policy to squeeze consumers and often suppliers to breaking point,’ he continued.

Professor Fels emphasised: ‘Reform to curb this is urgent.’

The report revealed that grocery prices across Australia have surged by 20 per cent since 2020, a stark contrast to the 8 per cent increase recorded over the decade prior.

This indicates that prices across Australia are rising far quicker than they fall, adding to the financial burden on households.

The report has also identified various ways in which businesses extract additional money from their customers.



One example is ‘loyalty tax pricing’, in which initial prices are low and then gradually increase over a longer period of time, without customers being aware of it.

Another common pricing strategy is 'drip pricing', where a part of the total price is hidden. This tactic is observed in flight tickets, hotels, homestays, phone charges, and medical procedures.

Professor Fels explained that businesses are also utilising algorithms to increase prices.

He stated: ‘This can sometimes operate like a cartel, especially if the algorithms are programmed to cooperate with the prices of competitors.’

In his report, Professor Fels singled out airline giant Qantas as a major culprit of price gouging.

He pointed out that airfare increases over the last three months of 2022 were significant enough to contribute to overall inflation in the travel industry.

‘A quarter of the inflation that month was mainly due to Qantas aggressively raising airfares, although Virgin may have also contributed,’ Professor Fels shared.

Last year, the ACCC filed a legal action against the national carrier for allegedly selling cancelled tickets to customers.



Additionally, Professor Fels suggested a major review of the national energy sector, citing a dramatic increase in electricity prices in recent years.

‘The electricity industry is riddled with questionable prices,’ he said.

‘This is not surprising. It is concentrated at all levels and includes also a higher degree of vertical integration between generators and retailers. There is regular price gouging according to the regulators themselves,’ he added.

Professor Fels received numerous concerns and submissions regarding supermarket prices, according to his inquiry.

His report also noted the use of misleading price tags on normal grocery prices, which businesses often use to claim discounts.

‘Misleading price displays are illegal but despite this, there is no prescribed minimum period where a business must advertise,’ Professor Fels pointed out.



The ACCC has been tasked with conducting a 12-month inquiry into pricing and competition within the supermarket industry.

Public hearings are scheduled to take place over the next few weeks.

Professor Fels stated that the public would ‘deeply welcome’ more action on prices from the federal government.

‘I think we should have more probing by governments and shaming about higher prices,’ he said.

Key Takeaways
  • A new report commissioned by the Australian Council of Trade Unions highlighted that Australians are being exploited by unfair pricing practices by big businesses, contributing to a cost-of-living crisis.
  • Professor Allan Fels, former Chair of the ACCC and prominent economist, claimed that corporate greed and gouging are driving high inflation rates, with Australians paying approximately $100bn per year due to unfair prices.
  • The report identifies various dodgy pricing tactics used by companies, including loyalty tax pricing, drip pricing, and the use of algorithms to set higher prices, which can act similarly to a cartel.
  • The ACCC has been tasked to conduct a 12-month inquiry into pricing and competition in the supermarket sector, and public hearings are expected in the coming weeks.

What are your thoughts on this new report, members? Share them in the comments below!
 
Sponsored
Collusion between supermarkets exists and don't say it doesn't these parasites made billion's from ripping Australian consumers of so let's get law's to protect the consumer and fine these companies 1 or 2 billion from their profits 📈 and let's see if the consumer gets a level playing field and have decent fines for other's that are ripping the guts out off consumers too one's they won't forget
 
A report is welcome news but does anything really going to change....NO. We all know the sneaky tactics supermarkets have but nothing gets changed. It's just more tax payers money to do a report where nothing happens with the results. Profiteering by supermarkets and businesses to the extreme. What about the poor farmers, consumers would accept increases more favourably knowing that farmers were getting their share of it.. but again NO.
 
Why has most of our electrical energy generation, transmission and sales been privatised? Three companies doing the job of 1 State entity is plain stupidity. Thanks John Howard and the Thatcherites of Australia.
 
Why has most of our electrical energy generation, transmission and sales been privatised? Three companies doing the job of 1 State entity is plain stupidity. Thanks John Howard and the Thatcherites of Australia.
Actually part of the reason why that was done was that the public servants responsible for managing the generation equipment failed to ensure any meaningful maintenance works were undertaken.

They weren't personally or financially responsible for the equipment not functioning, so they were happy to 'save the money' and get rewarded for helping to make the budget look good.

The project manager responsible for managing the maintenance program, was a contractor to my company, a few years after the privatisation.

Calling him a 20 Watt bulb would be generous.
 
About time Supermarkets were looked at. They have been price gouging since the Covid virus hit. It has to stop. I feel really sorry for the Farmers whose produce is paid at such a low price but, Supermarkets hike up prices. Fairs fair .
 
Actually part of the reason why that was done was that the public servants responsible for managing the generation equipment failed to ensure any meaningful maintenance works were undertaken.

They weren't personally or financially responsible for the equipment not functioning, so they were happy to 'save the money' and get rewarded for helping to make the budget look good.

The project manager responsible for managing the maintenance program, was a contractor to my company, a few years after the privatisation.

Calling him a 20 Watt bulb would be generous.
"Actually part of the reason why that was done was that the public servants responsible for managing the generation equipment failed to ensure any meaningful maintenance works were undertaken."

A sweeping generalisation not applicable to the State where I live.
 
This is not only Australia but world wide. There's two major corporations that owns approx 80% of businesses world wide being Blackrock and Vanguard. They are also invested in the NWO agenda and controlling humanity financially and supplies. They also are the major shareholders in pharmaceuticals, msm and some of the world banks, governments and wherever they can gain more control... the end game... they own and control everything with a greater reduced population of humans to be their slaves what technology can't provide
 
  • Like
Reactions: IAN3005 and Leenie
"Actually part of the reason why that was done was that the public servants responsible for managing the generation equipment failed to ensure any meaningful maintenance works were undertaken."

A sweeping generalisation not applicable to the State where I live.
So you live in a state where local and state public services are all run efficiently and affectively?

No potholes in the roads, no ramping in the hospitals, no youth crime in the streets and people's homes, no excess fuel for bushfires in the parks and forests, Etc. ETC.
 
The electricty companies started by jacking up prices despite the fact that wholesale electricty is the cheapest it's been in years. So all business have to increase prices to cover the massive cost for power. If power prices drop back to what they were then retailers would be able to drop their prices down (the hosest ones at least) and most things would be back to the way they were. It expect Albasleezy is getting pid off by these big companies to not do anything. Corruption and Scammers are much the same. They all want your money.
 
  • Like
Reactions: Leenie
IT'S ALWAYS BEEN ''ALL TALK NO ACTION''---TALK IS CHEAP. GET USED TO IT AS NO ONE WILL DO ANYTHING ABOUT IT. IF YOU HAVE THE SPACE IN OUR BACKYARD START GROWING YOUR OWN VEGS.
There will be no space in the backyard the way they are squeezing 2 homes on one block with the walls almost touching... houses built out of cardboard.....
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else

Latest Articles

  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×