Albanese vows to make price gouging by supermarkets illegal, Dutton says we need action now

Peter Dutton has slammed Labor’s supermarket plan, claiming it would do little to reduce grocery prices. Vote in our poll, have your say.

Anthony Albanese has fired a broadside at the big supermarkets on day 1 of the election campaign in a bid to win over voters concerned with the cost of living, by declaring his government would make price gouging illegal.

The pledge from Labor will set up a taskforce to give advice on new laws to tackle excessive pricing, and follows the release of the Australian Competition and Consumer Commission’s (ACCC) report - which found Coles, Woolworths and Aldi to be among the most profitable supermarket businesses in the world.

While the watchdog did not accuse them of price gouging, it did make 20 recommendations to ensure supermarkets did not engage in the practice, dodgy discounting or shrinkflation.

In a move Labor will be hoping will be seen by voters as a move to deliver further hip-pocket relief amid the cost-of-living crisis, Prime Minister Anthony Albanese on Sunday declared a re-elected Labor government would implement the recommendations to improve transparency about prices, price trends and promotions, and loyalty programs.

Laws to protect consumers from companies abusing their market power through excessive pricing are already in place in places like the European Union, United Kingdom and more than 30 states in the US.

“There are models that we will look at as well, but people know when they’re being ripped off, and we want to crack down on supermarkets,” Mr Albanese told ABC Insiders.

“This comes on top of the other measures that we’ve had, targeting things like shrink-flation, targeting the false specials that occur where supermarkets put up prices by a dollar, then decrease it by 50 cents and pretend that things are cheaper.”

Australian Competition and Consumer Commission’s (ACCC) report found Coles, Woolworths and Aldi to be among the most profitable supermarket businesses in the world.

The taskforce – which will also include representatives from Treasury and other market and regulatory experts – will consider other countries’ laws and options suitable for Australia with a report to be delivered to the government within six months.

The ACCC will also be put in charge of policing the new regime.

While existing regulations prevent companies abusing their market power, they do not prohibit excessive pricing.

Labor claims its reforms would also ensure the ACCC can investigate a broader range of concerning pricing practices by supermarkets with market power.

The measures follow Labor unveiling details of a $20 million plan to encourage Australians to buy locally-made products through an instore, online and media campaign, supporting manufacturers and products to get “Australian Made” certification and “improving the online Made in Australia directory”.

Mr Albanese said the proposed tough new measures on supermarkets were designed to ensure everyone received a fair price.

The move – unveiled on Saturday – follows Mr Albanese declaring Australians would be incentivised to buy local products after hefty tariffs were imposed by the Trump administration on steel and aluminium imports.

Mr Albanese said the proposed tough new measures on supermarkets were designed to ensure everyone received a fair price.

“Labor will make price gouging by supermarkets illegal, because Australian families deserve a fair price at the checkout and Australian farmers deserve a fair price for their goods,” he said.

Prime Minister Anthony Albanese and Jim Chalmers on the hustings in Brisbane on Saturday. Picture: Jason Edwards/NewsWire

Treasurer Jim Chalmers said the plan was designed to help drive greater competition, while ensuring Australians “aren’t being treated like mugs”.

In a dig at Peter Dutton, Mr Chalmers accused the Liberal Leader of posing “the biggest threat” to household budgets.

“We’re delivering a better deal for families at the checkout and a better deal for farmers at the farm gate,” Mr Chalmers said.

“Our plan helps deliver more competition, fairer prices and better deals for Australians.”

Competition, Charities and Treasury Assistant Minister Andrew Leigh said it was time Australians had the same protections from excessive pricing as those in place overseas.

“A fair market needs fair rules,” he said.

“When competition is weak, prices go up and families pay the cost.

“It’s time Australians had the same protections from excessive pricing as consumers overseas.”

Labor’s plan does not go as far as the Coalition, which earlier announced it would support divestiture powers as a “last resort” to address misuse of market share.

Australian Ppposition leader Peter Dutton has attacked the plan to make price gouging illegal. Picture: Thomas Lisson

Peter Dutton slammed Labor’s supermarket plan as “a review” rather than action, claiming it would do little to reduce grocery prices which had risen 30 percent under the Albanese government.

“Australians are being smashed with high grocery prices and the PM announces his fifth review,” he said.

“We need action now which is why we have announced tough action on divestiture of Coles and Woolies if they do the wrong thing.

“Labor’s latest announcement isn’t action: it’s a review. Labor has already conducted five reviews into competition – this is the sixth. It’s time for action.”

If Labor were serious about helping Australians with the cost of living, they would be supporting the Coalition’s policy to strengthen penalties for supermarkets who do the wrong thing, including break ups if necessary, he said.

They would also support the Coalition gas policy to bring down the cost of energy, “which is driving up the cost of food and groceries”, back the fuel excise cut to help Australians “afford to drive to the supermarket and end their “wasteful spending” that was keeping prices and interest rates higher than they would otherwise be, Mr Dutton said.