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A recent report on Coles and Woolworths, Australia's big supermarkets, confirms that they engage in price gouging, which is setting prices well above cost price. The report recommends giving courts the power to break up anti-competitive businesses, strengthening the Australian Competition and Consumer Commission (ACCC), and making the Food and Grocery Code of Conduct mandatory for supermarket chains. However, it is uncertain if these recommendations will lead to immediate relief for consumers. The report also discusses the possibility of introducing divestiture powers for the supermarket sector, but there is disagreement among political parties on this issue. The report highlights the need to address structural imbalances in the food system to bring about meaningful change. [Extracted from the article]

Australia's big supermarkets are being urged to change their operations through the implementation of a mandatory food and grocery code of conduct. The code, which is currently voluntary, sets standards for fair negotiations over prices for products. The review recommends penalties of up to A$10 million for non-compliance and a complaints mechanism to address retribution against suppliers. However, critics argue that the recommendations do not go far enough in addressing the issue of market dominance by major players Coles and Woolworths. The interim report also proposes independent mediation for suppliers and the need for clarity on the independence of mediators. The article emphasizes the importance of proper regulation and resourcing by the Australian Competition and Consumer Commission (ACCC) to effectively enforce the code. [Extracted from the article]