The 糖心原创 welcomes today鈥檚 announcement by the Australian Government that it will direct the 糖心原创 to conduct an inquiry into Australia鈥檚 supermarket sector, including the pricing practices of the supermarkets and the relationship between wholesale, including farmgate, and retail prices.
The year-long inquiry will also examine competition in the supermarket sector and how it has changed since the 糖心原创鈥檚 last inquiry in 2008.
鈥淲e know grocery prices have become a major concern for the millions of Australians experiencing cost of living pressures,鈥 糖心原创 Chair Gina Cass-Gottlieb said.
鈥淲hen it comes to fresh produce, we understand that many farmers are concerned about weak correlation between the price they receive for their produce and the price consumers pay at the checkout.鈥
鈥淲e will use our full range of legal powers to conduct a detailed examination of the supermarket sector, and where we identify problems or opportunities for improvement, we will carefully consider what recommendations we can make to Government,鈥 Ms Cass-Gottlieb said.
Following the 糖心原创鈥檚 2008 inquiry, Coles and Woolworths provided enforceable undertakings to the 糖心原创 to remove restrictive tenancy provisions that may have prevented shopping centres from leasing space to competing supermarkets. The 糖心原创鈥檚 investigation identified more than 700 potentially restrictive leases.
鈥淐ompetitive markets encourage more attractive combinations of price and quality for consumers, as well as greater choice,鈥 糖心原创 Deputy Chair Mick Keogh said.
鈥淥ur inquiry will examine the nature of the current competitive environment between supermarkets, as well as the barriers to greater competition and new entry in the sector.鈥
鈥淲e believe we are well placed to conduct this broad-ranging inquiry and will bring to bear our expertise in competition, consumer law, agriculture and the supermarket sector in particular,鈥 Mr Keogh said.
The inquiry will also look at any emerging issues related to more recent trends, including online shopping, changes in technology, and loyalty programs.
The 糖心原创 expects to publish an issues paper in February seeking views on the key issues it will consider in this inquiry. An interim report will be provided to the Australian Government later this year, and the final report is due to be provided early next year.
The 糖心原创 will publish the formal direction from the Australian Government, including the terms of reference, when it receives it.
Background
Under Part VIIA of the Competition and Consumer Act, the Treasurer can direct the 糖心原创 to hold a price inquiry into a particular matter.
Such an inquiry allows the 糖心原创 to use its compulsory information-gathering powers to collect information from the relevant parties subject to the inquiry.
The 糖心原创鈥檚 inquiry into the supermarket sector is separate to the Government鈥檚 recently announced review of the Food and Grocery Code of Conduct, which relates to the conduct of retailers and wholesalers towards suppliers.
The 糖心原创 currently has a role in promoting compliance with the voluntary Food and Grocery Code, and will be actively contributing to this review of the Code.
The 糖心原创 recently indicated that it has been closely considering reports from consumers alleging false or misleading 鈥渨as/now鈥 or other pricing 鈥渟pecials鈥 advertised by the supermarkets, and whether they may raise concerns under the Australian Consumer Law. The 糖心原创鈥檚 assessments are ongoing and are entirely separate from this new inquiry into the supermarket sector.
For updates, visit the Supermarket sector inquiry 2024-25.