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AustraliaBlacktown Amendment 2009

Senate Inquiry into Trade Practices Amendment
(Guaranteed Lowest Prices - Blacktown Amendment) Bill 2009

 

External linkInquiry home page
(including public submissions)

The Bill
Introduced as private members bill by Senator Nick Xenophon and Senator Barnaby Joyce on 24 June 2009

Bill lapsed at the end of Parliament 28/9/2010 - it is not proceeding

About this Review

The Bill was designed to 'end the anti-competitive practice of geographic price discrimination, which can potentially drive independent retailers out of the market or deter them from cutting prices' by requiring large retailers 'to charge the same price at any location that is within 35 kilometres of another of their sites'

 

Review recommendations

The majority of the Committee (other than the two members responsible for introducing the bill) recommended that the Senate reject the bill. They concluded:

[5.31] The committee believes that there are legitimate operational reasons as to why the price of a good may vary between a company's metropolitan stores. Furthermore the committee agrees that the bill does not differentiate between price discrimination that is competitive and advantages the consumer with lower price outcomes and price discrimination that is non-competitive and possibly predatory and is of disadvantage to consumers.

[5.32] The committee have grave concerns that this legislation may unintentionally result in higher prices for consumers for retail goods as a result of uniform pricing with no "guaranteed" lowest prices being offered at all.