The Australian Competition and Consumer Commission (ACCC) has been granted $30 million of additional funding for investigations and enforcement relating to the supermarket and retail sector over the next 3.5 years.
The news comes shortly after the announcement that the organisation commenced Federal Court proceedings with Woolworths and Coles, accusing them of breaching Australian Consumer Law, after an investigation revealed they have been misleading consumers through discount pricing claims.
ACCC chair Gina Cass-Gottlieb said the additional resources would allow for a significant enhancement of the ACCC’s enforcement and compliance activities in an essential sector relied upon by millions of Australian consumers.
“Active, evidence-based enforcement of the Competition and Consumer Act is core to the ACCC’s work, and is essential for deterring conduct that harms consumers, competition and fair trading, and by extension productivity and the wider economy,” Cass-Gottlieb said.
“The ACCC’s work has always reflected the current issues impacting the Australian economy, consumers and businesses - informed by evidence, information and intelligence from a range of sources. This includes reports to our Infocentre and social media, engagement with consumer stakeholders and other government departments and regulators, as well as pro-active surveillance.”
“This funding will enable us to escalate a range of investigations in this sector, including in relation to potential misleading pricing claims or practices, claims about delivery timeframes and costs including for regional and remote Australians, and businesses misrepresenting consumers’ rights under the Australian Consumer Law,” she said.
The ACCC announces its compliance and enforcement priorities each year in February and March. This year its priorities included competition, consumer, fair trading and pricing concerns in the supermarket sector, with a focus on food and groceries.
The funding will add approximately $8.5m each year for the next 3 and a half years from January 1 2025. While already prioritising action in these sectors and taking action, this further funding will allow the ACCC to identify, progress and bring forward additional matters.
“We have heard first-hand from consumers how the cost of living is impacting their ability to choose and that they need to be more cautious with purchasing decisions. It is critical that consumers are provided with clear and accurate information about the price or value of the goods and services they rely on,” Ms Cass-Gottlieb said.
“The ACCC is also receiving an increasing number of reports from consumers worried about prices and representations made about the quality or features of goods and services, as well as a growing number of reports about delayed or non-delivery of goods purchased online.”
The ACCC is currently conducting a 12-month inquiry into Australia’s supermarket sector following a formal direction from the Australian Government in January. The interim report for the inquiry was released last week.
