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.

Unconscionable conduct

Unconscionable conduct is generally understood to mean conduct which is so harsh that it goes against good conscience. Under the Australian Consumer Law, businesses must not engage in unconscionable conduct, when dealing with other businesses or their customers

Applying for authorisation

Authorisation is a public process which commences once a valid application is lodged. The ACCC must issue a final determination in writing either granting or dismissing an application for authorisation (of non-merger conduct) within six months of receiving a valid application, unless extended.