ACCC interim report vindicates The Nationals’ calls for greater supermarket penalties

A damming interim report from the consumer watchdog on supermarket behaviour has vindicated The  Nationals’ ongoing calls for immediate action to stop alleged price gouging of farmers and families.

The ACCC’s 266-page Interim Report from its Supermarket Price Inquiry accused Woolworths and Coles of  operating within an “oligopoly”, which ACCC deputy chair Mick Keogh said, “can limit incentives to compete  vigorously on price.”

Released on Thursday, the report also notes that suppliers have reported to the ACCC that Woolworths and  Coles had used their market power to squeeze suppliers on the price for their products, as well as claims of  land banking to limit opportunities for rival supermarkets. 

Leader of The Nationals David Littleproud said Anthony Albanese had been distracted and focusing on the  wrong priorities while the country’s major supermarkets had been allowed to run riot impacting farmers at the  farm gate and families at the checkout.

“In 2022, The Nationals called for the Albanese Government to urgently bring forward a Food and Grocery  Code review, and then in 2023, we called for the ACCC to be directed to start an urgent price inquiry before  Christmas,” Mr Littleproud said.

“Labor repeatedly ignored our warnings for more than 12 months before finally announcing powers for an  ACCC inquiry in late January this year.

“This interim report vindicates our calls for greater penalties on Australia’s supermarket sector, but it’s a pity  this Labor Government dragged its heels to reach this point.”

Introducing divestiture powers, $2m infringement notices and a Supermarket Commissioner is what’s needed  to change the supermarkets’ culture yet the Prime Minister won’t support these despite voting for divestiture  powers in the energy sector in 2019.

The release of the interim report comes just days after the ACCC announced it was ACCC today announced it  had commenced separate legal proceedings against both Coles and Woolworths for allegedly breaching the  Australian Consumer Law by misleading consumers through discount pricing claims on hundreds of common  supermarket products. 

“There are families that won’t have dinner tonight, yet the Albanese Government is so out of touch, they’ve  failed to realise the urgency of addressing competition in the supermarket sector,” Mr Littleproud said.
“Australian farmers and Australian families simply want fairness at the farmgate and the supermarket  checkout.” 

The ACCC’s inquiry is expected to continue for another five months before it makes its recommendations to the  government.