Labor, the Coalition, and the Greens have all proposed banning supermarket price gouging in the next term of Parliament.
Labor kicked off its campaign for the 3 May federal election by announcing it would outlaw the practice of excessively and unnecessarily increasing prices.
It follows a year-long inquiry into supermarket giants Coles and Woolworths released earlier this month, which did not accuse either company of the practice.
Here’s what you need to know.
Price gouging
Price gouging is the practice of deliberately and unnecessarily inflating a product’s cost.
The practice is not illegal in Australia. Businesses are allowed to increase the cost of goods to make a profit.
However, it’s illegal for a business to mislead or lie about the reasons for a price hike.
Price gouging has been previously investigated by the Australian Consumer and Competition Commission (ACCC).
Govt plans
On Sunday, Labor announced it would outlaw price gouging if re-elected.
A taskforce would advise the Government on a way to crack down on “excessive pricing” through the ACCC.
When asked to define price gouging, Prime Minister Anthony Albanese said: “Price gouging is when supermarkets are taking the piss of Australian consumers”.
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Australia’s two largest supermarkets, Coles and Woolworths, control two-thirds of the sector.
Last year, the Government ordered the ACCC to conduct a review of the supermarkets’ price-setting practices.
In a report published earlier this month, the ACCC did not accuse either Coles or Woolworths of price gouging, while noting the cost of groceries has increased over the past three years.
It also said Coles and Woolworths’ market dominance means they have a “limited incentive to compete vigorously on price”.
Coalition
The Coalition has also suggested it will ban supermarket price gouging if it wins the upcoming election.
In an interview with the ABC, Coalition campaign spokesperson Senator James Paterson said: “We’re very happy to make price gouging illegal.”
In November, the Coalition introduced a bill to Parliament that would have given the ACCC powers to break up supermarket giants or hardware chains if they abuse their market power.
Greens
In September, the Greens introduced a bill to the Senate to ban price gouging.
It defined the practice as “a corporation with substantial market power... abusing that power by charging an excessive price for a good or service”.
Greens leader Adam Bandt said Labor has “followed” the party’s plan to outlaw supermarket price gouging, claiming “shoppers would have cheaper groceries already” if its bill had passed.
