Woolworths, Coles hit back over supermarket price gouging proposal: 'Tackle the real factors'
Coles and Woolworths want the government to focus on the "real factors" affecting Australian consumers after Anthony Albanese announced a crackdown on supermarket price gouging. The Prime Minister revealed on Sunday plans to introduce a law that would eliminate unfair prices "by the end of the year".
The change would hinge on Labor winning the May 3 election, but it would aim to keep prices on supermarket aisles from becoming excessive, especially if a certain product is in high demand. But the two biggest supermarkets believe the government has bigger fish to fry.
“Despite a 12-month inquiry into supermarkets, neither the government or the ACCC found evidence of price gouging,” a Coles spokesperson said.
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“What’s needed are measures that tackle the real factors driving higher grocery prices, which are rising costs such as energy, fuel, labour, insurance, production, freight and distribution.”
Woolworths added that a recent investigation found there was no evidence of price gouging going on in the industry.
“Woolworths provided thousands of documents, millions of data points to the ACCC and several senior executives participated in public hearings as part of a 12-month-long inquiry into the supermarket sector,” a spokesperson said.
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Are supermarket prices 'excessive'?
Labor's pitch comes just a week after the consumer watchdog dropped a 441-page review of Australia's supermarket ecosystem.
The Australian Competition and Consumer Commission (ACCC) admitted that Coles and Woolworths had increased their price margins over the past few years but they weren't "excessive".
The ACCC stopped short of calling the supermarket industry a duopoly and instead said there was far less competition here compared to other countries, which hurt shoppers.
The watchdog made 20 recommendations to fix issues it found in the sector, which Labor has agreed to "in principle".
But Coles and Woolies weren't the only players firing up over the government's price-gouging proposal.
The Australian Retailers Association (ARA) referenced the ACCC's report and said inflation at the supermarket checkout has been driven by the higher cost of wages, energy prices, and fuel.
