Stop overpaying: Government reveals plans on crushing price gouging

Aussies, especially seniors, have been feeling the pinch of the cost of living crisis.

Prices of essential goods and items have continued to rise, leaving a dent in people's savings.

A bold declaration from the government came as a relief to many Australians who have been grappling with rising living costs and shrinking wallets.


Prime Minister Anthony Albanese took a firm stance against supermarket price-gouging.

The Prime Minister promised to introduce legislation that would make the practice illegal.

Price-gouging refers to the act of a business excessively raising prices beyond fair prices, especially during times of high demand or limited supply.

It's a practice that has left many consumers helpless.


compressed-pexels-supermarket produce.jpeg
Supermarkets like Coles and Woolworths have been accused of unfair pricing practices. Image Credit: Pexels/Magda Ehlers


'I was asked today what price gouging is,' the Prime Minister prefaced.

'It's when supermarkets are taking the p***.'

Days after calling the election, Prime Minister Albanese billed the reform as a cost-of-living measure.

'Labor will make price gouging by supermarkets illegal,' Mr Albanese stated in an interview.

'Because Australian families deserve a fair price at the checkout, and Australian farmers deserve a fair price for their goods.'


As Aussies navigate supermarket aisles, many raised their eyebrows at the sudden spike in prices for everyday essentials.

It's a frustration felt across the nation, but what exactly constitutes price-gouging, and how will the government's proposed legislation tackle this issue?

The European Union, United Kingdom, and parts of the United States have laws in place to protect consumers from such predatory pricing.

Yet, Australia's current legal framework lacked a clear definition of price-gouging.

The Australian Competition and Consumer Commission (ACCC) has the authority to investigate and act against anti-competitive practices.

However, there's no specific law that addresses price-gouging.


Last November, a class action lawsuit was launched against Coles and Woolworths supermarkets with claims of deceptive pricing practices.

The lawsuit alleges violations of Australian Consumer Law by making false or misleading representations about product pricing.

A previous Senate inquiry also suggested that Coles and Woolworths are setting unfair prices and abusing market power, negatively impacting consumers and suppliers.

The inquiry recommended amending the Competition and Consumer Act 2010 to make price gouging an offence. It also supported divestiture laws to break up supermarkets engaging in anti-competitive conduct.

The first step in this legislative journey will be to implement the ACCC's supermarket inquiry report recommendations, which called for greater transparency around pricing, promotions, and loyalty programs.

The government also aimed to establish a task force to advise on the introduction of an excessive pricing regime, which the ACCC would oversee.

The proposed reforms could give consumers fair prices and ensure that Australian farmers receive fair earnings for their produce.


Treasurer Jim Chalmers emphasised that the government's focus is on delivering better deals for families and farmers alike.

Meanwhile, Liberal leader Peter Dutton shared a different approach for a solution.

He suggested that under a Coalition government, supermarkets could be forced to sell stores if they maintain high prices.

The debate over how to regulate supermarket pricing has been contentious among Australians.

As we await further details on the proposed legislation, the fight against price-gouging goes beyond laws and regulations.

It's about creating a fairer marketplace where competition can thrive, and consumers can shop with confidence.
Key Takeaways

  • Prime Minister Anthony Albanese accused supermarkets of price gouging and declared that he would make it illegal.
  • Albanese promised to introduce reforms that would improve transparency about prices and promotions following ACCC recommendations.
  • The ACCC previously took legal action against Woolworths and Coles for allegedly misleading consumers about discounts through their promotional campaigns.
  • A class action was also launched against the supermarket duopoly for allegedly deceptive pricing.
We would love to hear from you. Have you noticed price hikes on your grocery bills? Will the government's proposed legislation make a difference? Please share your thoughts and experiences in the comments below.
 

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Isn’t it amazing how the Prime Minister has suddenly decided to make price gouging by the Supermarkets illegal .. who he is trying to impress….sorry not me..
They should check the prices the Supermarkets are charged by Wholesalers. That is where some pf the problem originates. Having working in the industry for 40 years it is a real eye opener. Price increases in many cases = more GST for the Govt.
 
How is forcing supermarkets to sell their business going to help if Woolies say we’re forced out it would just narrow down the shopping supply it won’t fix prices 🧐
 
Nothing but a 'love piece' for Albo. The inquiry (his) stated that they could not find any clear evidence of 'price gouging. Albo has jumped on the cart/bandwagon with a 'see I'm tough' and I'm looking after you all. But I doubt we will see much change in the price on supermarket shelves. In reality the prices in the shops has been pushed up more by Albo and Bowen's price gouging with the cost of power caused by their mad green energy policies and all the subsidies being paid to companies, and us is only crippling Australia. Along with that Albo is spruiking his big plan for 'Made in Australia' but who in their right mind would think of making things in Australia with our power prices and wage structure if they don't get massive subsidies. All this will only see us pay more for things and we will have to be taxed more so that we can be compensated, to help with their socialist agendas.
 
The only reason grocery prices at the moment go up is to increase their profit so it is about time something is done why not right now obviously I can't say why not now
 
All this will only see us pay more for things and we will have to be taxed more so that we can be compensated, to help with their socialist agendas.
You should research the difference between capitalism and socialism.

In capitalist societies, the free market (and, therefore, supply and demand) determines production and pricing with little government intervention. In socialist economies, governments control production, distribution, and prices.

If you wish for a purely capitalist economy, expect the prices of goods and services to spiral out of control. Food, power, fuel, health care services and education costs would go through the roof in the event of total privatisation. Don't forget that the Fraser government abolished Medibank in 1981, only to have the Hawke government reintroduce it in 1983 under the guise of Medicare.

Be very careful what you wish for.
 
In Queensland during the floods, some retailers were selling 'slabs of water' for $50, the papers and news people raised the issued however, there was no 'follow-up' by any of the news people or Gov. about any fines that were issued or actions taken against these retailers. 'No shit Sherlock'.... These so-called Gov. Agencies, who are supposed to monitor, prosecute, fine or expose these grubs, absorb a lot of public monies to operate. I have met some of these people, and I am relating this to NSW, I found them to be lazy, working under directions that 'the Minister has told them not to make waves or complaints coming back to the Department'. They are staffed by public servants, who are mostly interested in what promotional opportunities are coming up to push them up the ladder.... a major decission for most of them is whether to have a plain or chocky biscuit with their morning cuppa... now Albo is 'going to do something', he doesn't even know what to do, Dutton also, they are all in the same life-raft, and can't agree on how to use an oar and which way to row... I know when there is going to be an election before it is even announced....it is the fact that we are 'living in the promise land'..... all the promises come out like tea being poured into a cup..the milk and sugar will come after, and only if you re-elect me for another term....they arn't smart enough to do something at the beginning of their term, even though it was evident then, it suddenly is under the spotlight at the end of their term.....Have a great day everyone, don't forget to vote and lets get rid of all the minor parties/independants we have enough 'no-hopers' in the big ones, at least we won't have a hung parliament with the 'prostitutes selling their votes so the Minority Gov. can try and Govern.'
 
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He has had years to do this but has only just thought of it as an election bid. Lying, thieving bastard he is and won't be getting my vote.
He says that supermarkets are taking the piss - ha ha who is taking the piss now Albo? Funny the ACCC didn't find what he raving about - and he doesn't speak from experience here either as he has never been in the private sector and has no understanding of how commerce works!
 
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This practice has been going on for whole time Labour has been in power, so now once again we hear another Lie/promise.
Has Albo had his head buried in the sand for the last three years.
Is there nothing this pathetic man will do to attempt to win votes.
Like the rest of those in Federal and State Government, don’t care less about the essentials , food, petrol etc etc, everything is paid from the taxpayers never ending bucket, which they ALL have their greedy troughs in.
Yes I will not be voting for him he is a liar and a cheat.
 
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The last time the government pledged this they gave us 300.00 off our electricity I don't know about you but that helped us it was nice to receive that gift it grew our credit greatly. If it doesn't help people maybe they need to, examine how they a handling their money.
First of all they hiked your power bills by thousands and then give you $300 off the extra charges and taxes they have levied on you and you say 'Yippie that's wonderful. Thanks a lot Albo and Bowen.
 
I just wonder whether the increases in power, wages, transport costs, number of new public servants and the waste of millions upon millions of $$$'s on failed green energy schemes plus the failed referendum and uncontrolled government largesse could have any bearing on Australia's economic woes.
 
As I've said before, it is all a left wing con.

Indirect taxes were raised via things like the $33 dollar pay rise. An employee gets about $24, after tax, but the employer has costs associated up to $40. This leads to inflation and continuing cost of living crisis,
 

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