Greens calls for price gouging companies to be hit with $50m penalty

The Greens have called for companies found guilty of price gouging to be hit with a $50m fine.

The Greens are calling for companies found guilty of price gouging on essential products and services like rent, energy and groceries to be hit with a maximum penalty of $50m.

The minor party will give notice of the bill in the Senate on Thursday, with the proposed legislation mirroring laws in the European Union which is aimed at stopping large corporations from abusing their market power.

If passed, the Australian Competition & Consumer Commission (ACCC) will be given powers to apply for an order to the Federal Court if it believes a related company has engaged in price gouging.

Greens’ economic justice spokesperson Nick McKim said the Bill will make it illegal for companies to abuse their “substantial market power” to “charge excessive prices for goods and services”.

Green Senator Nick McKim said the proposed legislation would stop large companies from increasing the cost of essential products and services. Picture: NewsWire / Martin Ollman

“We’re taking a stand against the unchecked greed that’s fuelling the cost-of-living crisis, and we’re urging the parliament to support this critical reform,” said Senator McKim.

“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.”

The ACCC would also force a business to lower the price of a product if it was sold in a competitive market, and force the company to guarantee the supply of the product.

Senator McKim said the measure was necessary amid a cost-of-living crisis fuelled by stubborn inflation and high interest rates.

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

“There is rampant price gouging and it needs to end.”