Farmers join forces to draw up mandatory code of conduct prohibiting price gouging
Tuesday 15 October 2013 @ 9.25 a.m. | Trade & Commerce
The ongoing price war between the major supermarkets has prompted farmers from four states to band together to develop a mandatory code of conduct prohibiting price gouging.
A new committee, set up by agricultural lobby groups from New South Wales, Victoria, Western Australia and Queensland, will push for the code of conduct to be introduced in order to prohibit price gouging by supermarkets.
Price gouging is covered under Part VIIA of the Competition and Consumer Act 2010 (Cth) which allows the ACCC to investigate price monitoring and surveillance relating to industries or businesses declared by the Australian Government.
The ACCC is currently investigating allegations of improper behaviour by supermarkets, and has not yet decided whether action will be taken. Farmers have said that the market monopoly of Coles and Woolworths means many producers are being ripped off.
According to the Australian Food and Grocery Council, price discounting is pushing up producers' costs by more than 6 per cent.
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