Anthony Albanese tells Coles, Woolworths to ‘get your act together,’ issues fine threat
Prime Minister Anthony Albanese warned supermarket giants to “get your act together,” after they were accused by the consumer watchdog of price gouging.
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Prime Minister Anthony Albanese says Coles and Woolworths could be liable for “significant fines” if they’re found guilty misleading consumers about price discounts on hundreds of products.
Consumer watchdog, the Australian Competition and Consumer Commission (ACCC) has launched legal proceedings against the two major grocers, with the government also releasing its draft exposure of its mandatory code of conduct for supermarkets.
Describing the allegations as “an outrage”, Mr Albanes said both Coles and Woolworths would face high financial penalties, plus a hit to their brand.
“They’ll get a bit more than a slap on the wrist. There are significant fines can be put on both of these supermarket giants,” he said.
“I think the implications for their brand has been damaged by this because it confirms what many shoppers think.”
In comments to reporters later, he said the allegations are proof the big players needed to be controlled through a strict code, which would make them liable for multimillion-dollar fines.
“They have an obligation to people who go into their stores, who show that loyalty, to do the right thing. But we will make sure by mandating the code of conduct that that occurs,” he told reporters from Perth.
“It’s not good enough. Get your act together and behave as you would expect anyone to behave in this country.
“People expect honesty, and they expect that that old fashioned Australian notion of people being fair dinkum and giving people a fair go when people are under cost of living pressures.”
The ACCC has alleged both major supermarkets pushed prices up by at least 15 per cent before slapping them with promotional discount stickers often at prices higher than before the hike.
The ACCC said Woolworths did this for 266 products in its Prices Dropped promotion over a period of 20 months, while Coles did it for 245 products in its Down Down promotion across 15 months.
‘Appalling’: Brutal takedown of Coles, Woolies
Earlier on Tuesday, Social Services Minister Amanda Rishworth accused the supermarkets of “appalling behaviour”.
“It is really disturbing news that we’ve seen that the supermarkets have been effectively price-gouging Australians for a long time,” Ms Rishworth told Nine’s Today program.
“And that’s probably contributed significantly to inflation and to some of even the increased interest rates that we’ve seen in recent years.”
“I really think that at a time of a cost-of-living crisis, when Australians are really struggling with the price of so many essentials, the behaviour of Coles and Woolworths has been unconscionable,” Ms Rishworth said.
“We do need the ACCC. We need the government to work on competition in lots of industries.”
Following the ACCC’s announcement, the Albanese government on Monday said it was launching an exposure draft of a new mandatory grocery code that could hit major supermarkets with multimillion-dollar penalties for serious breaches.
The new code aims to boost protections for suppliers, introducing stronger dispute resolutions provisions and guards to prevent suppliers from supermarket retribution.
There will also be expanded protections for whistleblowers to ensure their identities are kept secret.
Though, the Coalition is not convinced the code would do anything to keep supermarkets in check.
Liberal senator Matt Canavan said Coles and Woolworths were “already subject to the code of conduct that the Prime Minister is waving around as some sort of big stick”.
“Clearly the supermarkets aren’t at all worried about the wet lettuce of Anthony Albanese code of conduct,” he told Sky News.
“All the Prime Minister’s proposed to do is make it mandatory, which will extend the number of supermarkets that have it.
“But Coles and Woolworths already do have it, and they’re engaging in this kind of conduct.
“So it’s not working. So we need a different solution.”
The Coalition’s solution is divestiture, or forcibly breaking up businesses.
It unveiled the interventionist policy as a “last resort” for companies that repeatedly price-gouge.
Following the ACCC’s announcement, the Coalition has been drumming the divestiture drum harder.
“Almost every other country in the world, every developed country in the world, has a form of divestiture powers in their competition laws,” Senator Canavan said.
“We don’t. We should do that.”
The policy has been rebuked by the Business Council Australia, and criticised by Mr Albanese as an attack on capitalism.
Originally published as Anthony Albanese tells Coles, Woolworths to ‘get your act together,’ issues fine threat
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