It is illegal for competitors to work together to fix prices rather than compete against each other. This conduct restricts competition, and can force prices up and reduce choices for consumers and other businesses.
A supplier may recommend that resellers charge an appropriate price for particular goods or services but may not stop resellers charging or advertising below that price.
While the ACCC can’t set supermarket prices, we do require large supermarkets and online stores to display unit prices to help you compare many products. The Australian Consumer Law also protects you against businesses that make false claims about grocery items.
There are laws about the way prices are displayed. Prices should be genuine and you should be able to easily see the total price of anything advertised. If multiple different prices are displayed on a product or in advertising, the business has to fix the display or sell you the item for the lowest price.
Big supermarkets and online food stores must display the total price as well as the price per unit of measurement for many items.
Ethanol blended fuels and biodiesel contain renewable vegetable and animal products. The ACCC is monitoring developments in this emerging market.
Petrol prices are determined by several overseas and local market forces. While the ACCC does monitor petrol prices, we do not set or control them.
Businesses have certain rights and responsibilities when setting and displaying the prices of their goods and services.
Petrol prices in regional locations are generally higher than those in the capital cities. They are also more stable, as there are only a few regional locations with petrol price cycles.
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.