News 
 National Rural News 
 Agribusiness and General 
 General 
 Investigate supermarket lobby, says report 

Investigate supermarket lobby, says report

20 Nov, 2009 05:59 AM
A POWERFUL retail lobby group representing Coles and Woolworths should be investigated for breaching competition laws over the failed Grocery Choice website, a damning Opposition-dominated Senate committee report has recommended.

The committee's long-awaited report on the Rudd Government's failed price-monitoring website called for the competition regulator to determine whether the Australian National Retailers Association breached the Trade Practices Act in its dealings with consumer group Choice over the website.

The website was scrapped days before it was due to be relaunched by Choice in June. Initially run by the Australian Competition and Consumer Commission, it was widely criticised for being out of date and irrelevant to shoppers keen to reduce their grocery bills.

In its submission to the inquiry, Choice argued that, through the retailers association, the big chains were able to band together and stop the website progressing. ''It was our view that Woolworths and Coles hid behind ANRA to basically sabotage an initiative that would have bought much-needed competition to this sector,'' Choice spokesman Christopher Zinn said.

But the association has rejected claims it breached competition laws when it negotiated on behalf of supermarket chains Woolworths, Coles and Franklins starting in May this year.

''ANRA believes that there were a number of difficulties associated with the Choice website model,'' the group's chief executive officer, Margy Osmond, said in a statement. ''Choice's model was never going to provide real-time shelf prices that it promised, making it of little use to consumers.''

The association adhered to the Trade Practices Act, Ms Osmond said. ''ANRA has always been mindful and observant of the requirements of the law in all of its dealings.''

She said the committee had failed to make reference to the difficulties associated with the website and that Choice was asking for the supermarkets to conduct the equivalent of 2 billion price checks a year. ''That's a huge task but also a meaningless one, as the price data collected would be out of date.''

But Choice has welcomed the report, saying it dispels ''mythology and misinformation'' surrounding the website's end.

In their dissenting report, the committee's two Government senators said claims the site was a waste of money ''fail to recognise that the ACCC successfully ran and operated the Grocery Choice website for six months'' and pointed to other Government measures to improve competition.

Print
Increase Text Size
Decrease Text Size

comments


Date: Newest first | Oldest first
What's the problem? This is the level playing field at its best! Boycott these two companies now!
Posted by tigerdicky, 20/11/2009 7:32:18 AM
ACCC told us it's just market forces at work, so it must be right. After all, they were commisioned by the govt to look into the supermarket industry.
Posted by shaun, 20/11/2009 4:35:29 PM
I never saw the value in a site that, if I understand correctly, was going to update prices once a week in an industry where there can be daily changes. Aside from which, most consumers who have an interest in price would already know which local retailer, big or small, is the best place to shop.
Posted by Alternative View, 23/11/2009 7:47:02 AM
I frankly think that Choice has it wrong on this one. Some supermarkets have 30,000 lines, prices vary around the country and change constantly. Last time I checked, Coles actual profit overall was around 3% over all goods, hardly a rip-off. These figures are public information. Wages, theft, rents, payroll tax and the rest, make these places expensive to run. Everyone focuses on Coles and Woolies, forgetting the prices charged by global food companies like Nestle, Heinz, Simplot etc.
Posted by Kanzi, 23/11/2009 10:04:41 AM

post a comment


Screen name  *
Email address  *
Remember me?
Comment  *
 
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.
Related Coverage
ARTICLES
MULTIMEDIA
18 November, 2009
POLL
Q: Do you believe your farm business can profit from an emissions trading scheme?

Yes
(20.3%)

No
(70.1%)

Undecided
(9.6%)

Total Votes: 606
Poll Date: 15 November, 2009

Most popular articles

SPRAY AWARDS NEWS MREC



Queensland Country Life







Weather brought to you by:

Weatherzone

Classifieds

Front Page

Current Issue
Privacy Policy | Conditions of Use | Advertising Terms | Copyright © 2012. Fairfax Media.
 SEND...
 SAVE...
 SHARE...