Supermarkets, fuel in watchdog's sights
The names of the companies have not been revealed, but the chairman of the Australian Competition and Consumer Commission, Rod Sims, is set to outline on Thursday that the ACCC is focusing on "competition and consumer issues arising in highly concentrated sectors, and in particular the supermarkets and fuel sectors".
"Some forms of conduct are so detrimental to consumer welfare and the competitive process that the ACCC will always assess them as a priority, irrespective of which sector of the economy the activity occurs," Mr Sims will say in a speech to the Committee for Economic Development of Australia.
He will also reveal the commission is cracking down on "credence claims" about products, particularly claims about the origin of meat.
"We have already been working on these matters with actions in relation to a number of 'free range' claims, and we have tackled alleged misrepresentations in the labelling of extra virgin olive oil and taken on country [or region] of origin claims from sheepskins to meat."
Not all the investigations will lead to court action.
European consumers have been shocked by revelations some supermarket foods labelled as beef contained horse meat sourced from unknown origins.
Mr Sims confirmed last week the ACCC was investigating Coles and Woolworths. However, he has now watered down expectations of court action, saying the regulator cannot use information from 50 secret conversations, and still has to obtain and analyse information before it can be sure breaches have occurred.
Also on the ACCC agenda for this year is managing electricity privatisation in Queensland and NSW, unfair contract terms, and speeding up merger and acquisition reviews.
Frequently Asked Questions about this Article…
The article says the Australian Competition and Consumer Commission (ACCC) has up to 30 in‑depth investigations into cartel conduct and anti‑competitive behaviour underway, with a focus on highly concentrated sectors where consumer welfare could be harmed.
Yes. ACCC chairman Rod Sims said the commission is concentrating on competition and consumer issues in highly concentrated sectors, and in particular the supermarkets and fuel sectors.
Mr Sims confirmed the ACCC was investigating Coles and Woolworths. However, he also cautioned that investigations do not always lead to court action and the regulator needs to obtain and analyse evidence before concluding breaches have occurred.
Credence claims are product assertions consumers can't easily verify themselves—such as claims about the origin of meat. The ACCC is cracking down on these claims and has already acted on issues like 'free range' claims, alleged mislabelling of extra virgin olive oil, and country or region of origin claims from sheepskins to meat.
According to the article, Mr Sims said the regulator cannot rely solely on information from 50 secret conversations; the ACCC still needs to obtain and analyse information before it can be sure breaches occurred and pursue court action.
The article references recent European revelations where some supermarket foods labelled as beef were found to contain horse meat sourced from unknown origins—an example of why the ACCC is attentive to origin and labelling claims.
The ACCC's agenda also includes managing electricity privatisations in Queensland and NSW, addressing unfair contract terms, and speeding up merger and acquisition (M&A) reviews.
No. The article notes that not all investigations lead to court action. The ACCC must gather and analyse sufficient evidence to be confident a breach has occurred before taking matters to court.
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