Greens calls for price gouging companies to be hit with $50m penalty
The Greens have called for companies found guilty of price gouging to be hit with a $50m fine.   

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News.com.au
September 12, 2024

The Greens are calling for companies found guilty of price gouging on essential products and services like rent, energy and groceries to be hit with a maximum penalty of $50m.   

The minor party will give notice of the bill in the Senate on Thursday, with the proposed legislation mirroring laws in the European Union which is aimed at stopping large corporations from abusing their market power.

If passed, the Australian Competition & Consumer Commission (ACCC) will be given powers to apply for an order to the Federal Court if it believes a related company has engaged in price gouging.

Greens’ economic justice spokesperson Nick McKim said the Bill will make it illegal for companies to abuse their “substantial market power” to “charge excessive prices for goods and services”.

Green Senator Nick McKim said the proposed legislation would stop large companies from increasing the cost of essential products and services.
“We’re taking a stand against the unchecked greed that’s fuelling the cost-of-living crisis, and we’re urging the parliament to support this critical reform,” said Senator McKim.

“The choice is clear: side with the big corporations who are profiting from people’s pain, or side with the Australians who are struggling to get by.”

The ACCC would also force a business to lower the price of a product if it was sold in a competitive market, and force the company to guarantee the supply of the product.

Senator McKim said the measure was necessary amid a cost-of-living crisis fuelled by stubborn inflation and high interest rates.

“Australians are being smashed by rising costs for essentials like rent, food and energy, while corporations are raking in massive profits,” he said.

“There is rampant price gouging and it needs to end.”   

Greens Introduce Bill to Make Price Gouging Illegal   
2024-09-12
greens.org.au
The Greens will introduce a bill to the Senate to make price gouging illegal, with big penalties for corporations who charge excessive prices.

“Australians are being smashed by rising costs for essentials like rent, food and energy, while corporations are raking in massive profits,” Greens Economic Justice Spokesperson Senator Nick McKim said.

“There is rampant price gouging and it needs to end.”

“Our bill will put an end to corporate price gouging by making it illegal for corporations with substantial market power to charge excessive prices for goods and services.”

“This will rein in corporate greed and reduce the cost of food and groceries.”

“Since Labor took office, the cost of living has skyrocketed, but they’ve done nothing to stop big corporations from exploiting this crisis.”

“They’ve allowed banking, supermarket and energy corporations to rake in billions in profits while millions of Australians struggle to make ends meet.”

“We’re taking a stand against the unchecked greed that’s fueling the cost-of-living crisis, and we’re urging the Parliament to support this critical reform.”

“The choice is clear: side with the big corporations who are profiting from people’s pain, or side with the Australians who are struggling to get by.”

The bill will target corporations that abuse their market power by charging prices beyond what is justified by costs or competitive conditions.

The proposed law mirrors successful provisions in the European Union, which have protected consumers from unjustified price hikes.

Under the Bill, the ACCC will be able to apply to the Court for an order where it believes a corporation has abused its market power by price gouging.

If a corporation is found to have illegally price gouged, the court can then impose orders under section 76 of the Competition Act, which include a maximum civil penalty of $50 million.

Under section 87(B) of the Competition Act, the ACCC can also require enforceable undertakings by a corporation.

The undertakings the ACCC may impose are sufficiently broad to allow the ACCC to require a corporation to lower the price of a product to the price it would cost if it was sold in a competitive market, for a specified period of time while guaranteeing supply of the product.

The Greens will give notice of the Bill today and formally introduce it next week.

Yes Bobby, that is a crazy price.  When will they stop the price gouging?.   

The Green's still haven't decided on what constitutes "price gouging". Is it more than 5% on top of costs? 10%? $100 million profit shows nothing on the basis of costs. $100 million profit on turnover of $1 billion is 10%, on $10 billion it is only 1%.

Lets hope the greens and the teal independents, do well at the next election.  We don't want a government either labor, or the coalition with an automatic rubber stamp.