Greens want supermarkets, big businesses that price gouge to face $50 million fines

The Greens want supermarkets, power companies, banks and other big businesses that rip off customers to face $50 million fines under new anti-price gouging powers.

The minor party will put legislation to the Senate next week beefing up the powers of the consumer watchdog and making it illegal for corporations with substantial market power to charge excessive prices.

The Australian Competition and Consumer Commission would be able to seek a court order where it believes a company has abused its market power to overcharge, and the court could impose a fine of up to $50 million.

This new regime is modelled on European laws.

Greens economic spokesman Nick McKim said the move would rein in corporate greed.

“Since Labor took office, the cost of living has skyrocketed, but they’ve done nothing to stop big corporations from exploiting this crisis,” he said.

“They’ve allowed banking, supermarket and energy corporations to rake in billions in profits while millions of Australians struggle to make ends meet.”

The Coalition wants to tackle high grocery prices by bringing in divestment powers that could see supermarket giants Coles and Woolworths ordered to sell stores or split off parts of their businesses.

The Government has tasked the ACCC with examining the supermarket sector and asked consumer group Choice to prepare a regular report on grocery prices in a bid to increase transparency and competition.

Prime Minister Anthony Albanese said last week this work was leading to better competition but not enough.

Last month, Greens leader Adam Bandt also unveiled a revamped policy to impose an “excessive profits” tax on large companies, likely to include the major banks and supermarkets, along with oil and gas companies and most mining ventures, which he said would raise a combined $514 billion.