Australia’s consumer watchdog has shown what New Zealand should do to achieve fair and reasonable food and grocery prices.
“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.”
She said that the big supermarkets, Woolworths and Coles, in Australia control about 70 percent of the market. In New Zealand, the big two control nearly 90 percent with far less regulatory action than in Australia.
“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 ten million dollars yearly by 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 wouldn’t take too long. In the meantime, the Commission needs to deal much more firmly with the duopoly.”
Chetwin urged the Commerce Commission to follow the ACCC’s example and act more urgently. She added that the government should strengthen the Commerce Commission’s powers to be even more effective in reducing food prices.
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