Competing fairly

Setting prices

Businesses are free to set their prices and discount their goods and services as they see fit, but they must set their prices independently of their competitors. Pricing goods below cost can be illegal in certain circumstances.

Unit Pricing Code

Businesses need to comply with the Unit Pricing Code if they sell certain food-based grocery items. Grocery retailers are required to display a unit price so that consumers can make informed choices.

Misuse of market power

A business with a substantial degree of power in a market is not allowed to engage in conduct that has the purpose, effect or likely effect of substantially lessening competition in a market. This behaviour is referred to as ‘misuse of market power’. It is not illegal to have, or to seek to obtain market power by offering the best products and services.