Australia's Consumer Watch Dog Shows Way To Go To Lower Food And Grocery Prices

Australia’s consumer watch dog is showing what we in New Zealand should be doing to get fair and reasonable food and grocery prices, the Grocery Action Group (GAG) says.

“The Australian Competition and Consumer Commission (ACCC) is taking their two big supermarkets to court over fake discounting,” said Sue Chetwin, GAG’s chair.

“We urge our Commerce Commission to scrutinise our supermarkets in the same way the ACCC does in Australia.

“Whereas over there the big supermarkets, Woolworths and Coles, control about 70 percent of the market, in New Zealand our big two control nearly 90 percent but here there is far less regulatory action than over there.

“Market competition is clearly not working since our food and grocery prices are nearly the highest in the world.

“In August the Commerce Commission also said Kiwi consumers were likely being ripped off to the tune of $10 million a year from supermarket pricing errors. Though it said consumers were right to expect correct pricing it did not say it would take further action.

“More competition in New Zealand could be the way to go if it wasn’t going to take far too long. In the meantime the Commission needs to be dealing much more firmly with the duopoly.

“We urge our Commerce Commission to take a leaf from the ACCC’s book and take action with more urgency, and for the Government to make good on the need to strengthen the Commerce Commission’s powers so it can be even more effective in bringing down the price of food.”

GAG:

The Grocery Action Group was formed to bring down the prices of groceries for all Kiwis. Our vision is to influence government, the regulators and other parties to deliver a competitive and consumer-focused grocery sector in New Zealand. Our board is made up of consumer, industry, supplier and Māori interest experts.

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