The Australian Competition and Consumer Commission alleges that Coles and Woolworths temporarily increased prices on everyday products before offering them at discounted rates, potentially deceiving consumers during the cost-of-living crisis.
If the allegations of dishonesty and illegality against Coles and Woolworths are accepted by the Federal Court, the effects on the supermarkets – and on public policy – will be large.
These are not luxury items favoured by wealthier shoppers. Those being allegedly conned and exploited were families struggling at the height of the cost-of-living crisis. The courts will be urged to set a fine so large that it deters businesses from treating this behaviour as a small cost risk. And if the allegations are proven, I believe the fines should be in the hundreds of millions of dollars. This sends an important message to Australian business as a whole.
Even if the gouging claims are proven, I doubt it would be appropriate to break up the big supermarkets. But I do believe that if there had been a divestiture power, it would have deterred this kind of behaviour.
Supermarkets Price Manipulation Coles Woolworths ACCC Cost Of Living Crisis
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