Labor invests $30m to tackle deceptive supermarket pricing
- The Australian government has provided $30 million to the ACCC to tackle deceptive pricing in supermarkets.
- Allegations against Coles and Woolworths have prompted a focus on reforming zoning regulations to improve competition.
- The initiative aims to protect consumers from unfair pricing practices and enhance market accountability.
In Australia, the federal government has allocated an additional $30 million to the Australian Competition and Consumer Commission (ACCC) to combat misleading pricing practices in supermarkets. This decision follows serious allegations against major retailers Coles and Woolworths, who are accused of providing deceptive discounts on common products. The funding aims to enhance the ACCC's capacity for investigations and enforcement in the retail sector. Furthermore, Treasurer Jim Chalmers plans to collaborate with state and territory governments to reform zoning and planning regulations, which are believed to hinder competition by allowing land banking. This practice involves large retailers purchasing land without the intention of developing it, thereby blocking potential competitors. The government is committed to ensuring fair pricing for consumers, particularly families and pensioners, and aims to hold supermarkets accountable for their pricing strategies. The ACCC will conduct public hearings with major supermarkets later this year as part of its inquiry into the sector.