The competition regulator is considering suing retailers over price manipulation product promotions and deceptive conduct, with the operations of Woolworths the owners of Big W, IGA, Harris Farm and Coles, who have been accused of pushing up inflation now in the sights of the ACCC.
Australian Competition and Consumer Commission chairwoman Gina Cass-Gottlieb who appears to be determined to take on retailers who are caught up in the ACCC’s retail pricing operation, is now considering legal action, against not only the Company owning the retail operation but the executives making or approving decisions.
The AFR claims that the ACCC already has enough information on one big supermarket chain for breaching consumer law, as Labor pushes Coles and Woolworths to give consumers and farmers a “fair deal.”
Australian Competition and Consumer Commission chairwoman Gina Cass-Gottlieb is “carefully looking” at potential litigation, saying “it is possible” there would be a court case brought in the next 12 months.
Ms Cass-Gottlieb told The Australian Financial Review the ACCC would not hesitate to take legal action against large companies, and their key decision-makers, for doing the wrong thing by consumers. “We think it is very important that is well understood,” she said.
During the past 12 months retailers such as IGA and Harris Farm, have lifted prices significantly.
In Mosman NSW where price gouging is rampant sugar free ice cream that normally costs $9.95 at IGA stores, has gone up in price and is being sold for $13.99 despite it being a locally manufactured product.
Also, in the sights of ACCC investigators is Qantas.
Already accused of deceiving customers by selling tickets for more than 8000 already cancelled flights ACC boss Ms Cass-Gottlieb now claims that she is concerned about the airline’s defence, which she said failed to deal with the main allegations.
The ACCC is currently investigating several complaints against Qantas, claim insiders relating to the high cost of air fares.
More lawsuits or court losses would be a blow for new Qantas chief executive Vanessa Hudson, and for the airline’s chief legal officer, Andrew Finch, particularly after the High Court last year ruled that the sacking of 1700 workers during the pandemic was illegal, leaving the airline with a huge compensation bill.
Ms Cass-Gottlieb said the regulator did not have price-monitoring powers and had limited scope to consider claims of price-gouging.
Where the ACCC does play a role is in pursuing misleading and deceptive conduct.
In two areas where it does have price-monitoring powers – the gas market and airline ticketing – Ms Cass-Gottlieb said there would be several big reports out this year.
Regarding airfares, she said the ACCC had been able to quickly reboot price monitoring operations.
That decision to drop airline price monitoring back in October 2023, attracted widespread criticism after Qantas revealed a record $2.5 billion profit amid plenty of accusations about price-gouging behaviour.
“We have been able to pick up the collection of the data from July 1. So, we’ve had no gap in time,” Ms Cass-Gottlieb said.