Albanese’s remarks coincide with increased scrutiny on Australia’s major supermarkets by regulators.
The Prime Minister, Anthony Albanese, has voiced support for the competition regulator’s legal action against Coles and Woolworths, emphasizing that customers should not be deceived. In a statement on Sept. 23, Albanese affirmed his government’s commitment to passing legislation that would impose substantial penalties on Aldi, Coles, Woolworths, and Metcash for serious violations.
Albanese highlighted the inadequacy of the current voluntary code following a government review earlier this year. He stated, “My government is dedicated to ensuring that Australian consumers are treated fairly, especially during difficult times when families are struggling. They deserve a government that is on their side.”
The Prime Minister’s response comes in light of two significant developments. Firstly, the Treasury Department has sought input on a draft code designed to enhance competition in the supermarket industry. The proposed Competition and Consumer (Industry Codes—Food and Grocery) Regulations 2024 seek to make the Food and Grocery Code of Conduct mandatory, improve dispute resolution mechanisms, address supplier grievances, and introduce severe penalties for violations.
Secondly, the Australian Competition and Consumer Commission (ACCC) has taken legal action against Woolworths Group Limited and Coles Supermarkets for allegedly misleading consumers. The ACCC accuses these supermarkets of falsely advertising discounted prices on numerous everyday products, with some items experiencing price hikes of at least 15 percent before being included in promotional campaigns.
Finance Minister Katy Gallagher emphasized that the proposed legislation forms part of the government’s response to cost-of-living pressures. Efforts are underway to release a quarterly report on the issue and the ACCC’s inquiry into supermarkets is expected to conclude early next year, aiming to alleviate financial burdens on households and secure better deals for families.
Albanese took a swipe at the opposition, contrasting Labor’s push for stronger ACCC oversight and a mandatory supermarket code of conduct with the previous Coalition government’s reliance on voluntary agreements. These proposed changes, informed by a review by former MP Craig Emerson, seek to level the playing field between suppliers and major retailers like Coles and Woolworths.
The proposed amendments to the Competition and Consumer Act 2010 are currently open for consultation until Oct. 18, 2024. Could you please rephrase this?
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