The Australian Competition and Consumer Commission (ACCC) has been granted an additional $30 million in funding over the next 3.5 years to bolster its investigations and enforcement activities in the supermarket and retail sector. ACCC Chair, Ms Cass-Gottlieb, stated that the extra resources would significantly enhance the ACCC’s enforcement and compliance activities in the sector.

The funding will be utilised to escalate investigations into potential misleading pricing claims or practices, claims about delivery timeframes and costs, and businesses misrepresenting consumers’ rights under the Australian Consumer Law. “This funding will enable us to escalate a range of investigations in this sector, including in relation to potential misleading pricing claims or practices, claims about delivery timeframes and costs including for regional and remote Australians, and businesses misrepresenting consumers’ rights under the Australian Consumer Law,” said Ms Cass-Gottlieb.

The ACCC announces its compliance and enforcement priorities each year in February and March. This year, its priorities included competition, consumer, fair trading and pricing concerns in the supermarket sector, with a particular focus on food and groceries. The ACCC is currently conducting a 12-month inquiry into Australia’s supermarket sector following a formal direction from the Australian Government on 1 February 2024.

So far this year, the ACCC has secured more than $85 million in penalties in consumer and competition enforcement work, not including the $100 million penalty against Qantas. The ACCC has also instituted proceedings against a range of parties in the retail sector, including the Good Guys, Coles and Woolworths.

The additional funding will add approximately $8.5m each year for the next 3 and a half years from January 1, 2025. The ACCC is an independent statutory government authority and Australia’s peak consumer protection and competition agency. The ACCC uses a range of tools to promote compliance with the Competition and Consumer Act 2010 and the Australian Consumer Law.

“We have heard first-hand from consumers how the cost of living is impacting their ability to choose and that they need to be more cautious with purchasing decisions. It is critical that consumers are provided with clear and accurate information about the price or value of the goods and services they rely on,” Ms Cass-Gottlieb added.

She also noted an increasing number of reports from consumers worried about prices and representations made about the quality or features of goods and services, as well as a growing number of reports about delayed or non-delivery of goods purchased online.

“In this, the 50-year anniversary of the Trade Practices Act, the ACCC remains committed to making markets work for consumers,” concluded Ms Cass-Gottlieb.