Greens propose multimillion-dollar fines for price gouging companies

Supermarkets, energy providers and banks would be fined up to $50 million for price gouging under a Greens proposal to protect Australians from “excessive” costs.

Supermarkets, energy providers and banks would be fined up to $50 million for price gouging under a Greens proposal to protect Australians from “excessive” costs.
Amid a cost-of-living crisis Labor and the Coalition are facing calls to back the minor party’s bill, which has been modelled on similar laws put forward in the European Union, when it is introduced in the Senate next week.

Greens economic justice spokesman Nick McKim said the “rampant” price gouging in Australia must end.

“Australians are being smashed by rising costs for essentials like rent, food and energy, while corporations are raking in massive profits,” he said.

“Our bill will put an end to corporate price gouging by making it illegal for corporations with substantial market power to charge excessive prices for goods and services.”

Greens Senator Nick McKim to introduce price gouging bill. Picture: NewsWire / Martin Ollman

Mr McKim said the proposal would “rein in corporate greed and reduce the cost of food and groceries”.

“Since Labor took office, the cost of living has skyrocketed, but they’ve done nothing to stop big corporations from exploiting this crisis,” he said.

Banks are among the companies the Greens are targeting with a new price gouging bill. Picture: NCA Newswire

“They’ve allowed banking, supermarket and energy corporations to rake in billions in profits while millions of Australians struggle to make ends meet.”

Mr McKim said the Greens were taking a stand against the “unchecked greed” fuelling the cost-of-living crisis, and urged Labor and the Coalition to support the reform.

The Greens say its price gouging laws will drive down grocery costs. Picture: Asanka Ratnayake/Getty Images

“The choice is clear: side with the big corporations who are profiting from people’s pain, or side with the Australians who are struggling to get by,” he said.

The bill would target corporations who “abuse their market power by charging prices beyond what is justified by costs or competitive conditions”.

It would allow the Australian Competition and Consumer Commission (ACCC) to make a court application for an order where it believes a company has engaged in price gouging.

If found guilty, the court would then be able to impose conditions such as requiring the company to lower the price of a product and hit them with a maximum civil penalty of $50m.