Consumer watchdog 'should have more powers to probe supermarket pricing'

Proposal to boost powers of Competition and Consumer Protection Commission 

Labour Party finance spokesman Ged Nash said it was notable that inflation has fallen recently, but that grocery prices have not fallen. Picture: Leah Farrell/Rolling News

The Competition and Consumer Protection Commission (CCPC) should be able to compel supermarkets to provide regular reports on grocery pricing and probe suspected price gouging, a Labour TD has said.

Labour’s Ged Nash is proposing new laws to give additional powers to the CCPC to allow the watchdog to do so.

“Grocery prices have remained historically high and they are climbing with no sign of them plateauing or certainly no sign of them coming down,” the Louth TD said.

Mr Nash said his proposals would provide the CCPC with more powers of market surveillance. He added that it would compel supermarkets to provide the CCPC information for “regular reports on pricing structures of groceries in this country and the performance of supermarkets”.

“Nobody’s talking here about price controls or anything like that, that wouldn’t work, and would have inadvertent knock on consequences that nobody could control.

What we want to see now is the CCPC empowered to take a greater interest in how supermarkets, the large multiples, operate in this country. 

Mr Nash said this legislation would provide the CCPC with the means to investigate whether there was price gouging in the sector. 

He also said the elevated inflation rate, caused by the Russian invasion of Ukraine, has fallen recently, but that grocery prices have not fallen.

He also said that while there was no direct reference to loyalty schemes, he believed there is an understanding at Government level there must be “greater transparency” on how they operate.

“I’ve received complaints from people who say when they go to a supermarket checkout, that the price isn’t as advertised if you’re not part of the particular supermarket scheme or promotion,” Mr Nash said.

“We need to be very clear on how that regulation in terms of the representation and presentation of prices in our supermarkets.”

The Labour TD said he did not have a problem with supermarket promotions or loyalty schemes.

However, he added: “They have to be fair, and often they’re not and they can be misleading. That’s particularly problematic now for people shopping.”

Mr Nash said he was “constantly suspicious” when one supermarket announces a cut in the price of milk, and then hours later a competitor does the same.

“That’s peculiar,” Mr Nash said, adding he was not accusing supermarkets of price setting, but that more competition was needed.