Overview
- The new prohibition begins on July 1 and applies only to ‘very large retailers’ with annual revenue above A$30 billion, a threshold that currently captures Coles and Woolworths.
- The Australian Competition and Consumer Commission will enforce the rule, can demand retailer data, and faces maximum penalties set as the greatest of A$10 million, three times the benefit gained, or 10% of annual turnover for each breach.
- The statute does not define what counts as a “significantly excessive” price or a “reasonable” margin, so the ACCC will assess claims case by case and rely on comparisons, cost and margin data, and other contextual factors.
- To manage enforcement the ACCC will monitor retailer pricing, publish a short list of ‘focus products’ for closer scrutiny, and ask consumers and suppliers to report suspected excessive pricing.
- The law is meant to act as a deterrent alongside merger-notification changes and consumer funding, but experts and Treasury papers warn proving excess on single grocery items is technically hard and supermarkets say rising input costs and compliance burdens explain prices.