Nash sceptical over clean bill of health given to supermarket big beasts in light of data gaps

Nash sceptical over clean bill of health given to supermarket big beasts in light of data gaps - The Labour Party

• Labour Bill that would force big operators to provide CCPC with data on profits must be enacted
• Government must instruct Commission to undertake in-depth study of the market in interests of transparency

Labour’s Finance spokesperson Ged Nash who has led the charge to tackle high prices at supermarket chain checkouts has expressed scepticism over the ‘clean bill of health given to supermarket big beasts’ by the Competition & Consumer Protection Commission (CCPC) in relation to the Commission’s analysis of the Irish grocery sector.

Deputy Nash said:

“Given the limited reliable data that is publicly available on supermarket profits in Ireland, it is a big stretch for the CCPC to definitively claim that the Irish arms of global retailers are no more or less profitable than their EU counterparts. This is a peculiar conclusion to reach, under the circumstances.

“This is exactly why Labour’s Unfair Pricing Bill, which would compel operators to share data on profit margins with the CCPC so they can undertake more frequent market analysis and surveillance to ensure competition is working and consumers are treated fairly, must be enacted by government.

“Back in 2023, Simon Coveney said he would force the big players to do just that. Since then, the sum total of government action to protect consumers has been the commissioning of this report. It is the policy equivalent of ‘can anything be said for another Mass?’.

“The narrative in this desk-top analysis, and most of the points made in it, are unsurprising and are not new. It is welcome that a light is being shone on the super-normal profits of big suppliers such as Unilever and the Kerry Group and more work needs to be done on that internationally.

“Because the CCPC says that current prices in Ireland are in line with other EU countries is little comfort to hard-pressed Irish households where salaries are not rising as quickly as prices.

“We need to get a better understanding of why prices for the basics in Ireland have remained high for so long; why they are not coming down and why there is only moderate competition with no new, major entrants in 25 years.

“This report does not have the answers and it reveals in stark relief how limited the actual functions of the CCPC are. Farmers have the Agri-Food Regulator to stand up for their interests while the limited interest government has in how competition and consumer protection works in the interests of citizens and small retailers means citizens are left to suck up high prices.

“The least the government can do is allow the Labour Bill to get to Committee Stage in September.”

ENDS

COMPETITION AND CONSUMER PROTECTION

(EXCESSIVE PRICING) BILL 2023

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CONTENTS

Section

2. Amendment of Competition and Consumer Protection Act 2014
3. Short title and collective citation and construction

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Act Referred to

Competition and Consumer Protection Act 2014 (No. 29)

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 COMPETITION AND CONSUMER PROTECTION

(EXCESSIVE PRICING) BILL 2023

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Bill

entitled

An Act to enable the Competition and Consumer Protection Commission better to perform its functions in relation to protecting consumers from abuse by undertakings of a dominant position by imposing unfair purchase prices, for that purpose to amend the Competition and Consumer Protection Act 2014, and to provide for related matters.

Be it enacted by the Oireachtas as follows:

 Amendment of Competition and Consumer Protection Act 2014

1. The Competition and Consumer Protection Act 2014 is amended by the insertion of the following after section 11:

“Supplementary powers of Commission: excessive pricing

11A.    (1)        In order to enable the Commission better to perform its functions in relation to enforcing the prohibition on abuse by undertakings of a dominant position by directly or indirectly imposing unfair purchase prices on consumers, the Commission may—

(a)        undertake studies, analyses and surveys with respect trade in any goods or services in the State or in any part of the State by undertakings having a dominant position in the sector concerned,

(b)        collect and compile information for that purpose, and

(c)        publish the results of any such studies, analyses or surveys.

(2)        A study, analysis or survey under subsection (1) may in particular include a study, analysis or survey of the cost to an undertaking of supplying the goods or services concerned to consumers and the amount of the undertaking’s profit margin.

(3)        In the case of an undertaking that trades in goods or services both in the State and outside the State, the reference in subsection (2) to profit margin means the profit margin attributable to the activities of the undertaking in the State.

(4)        In undertaking a study, analysis or survey under subsection (1), the Commission—

(a)        may, by notice in writing, require any person who, in the opinion of the Commission has information, or has control of a record or other thing, that is relevant to the study, analysis or survey to provide the information, record or thing to the Commission, and

(b)        may, by the same or another notice in writing, require the person to attend before a member or member of the staff of the Commission for that purpose.

(5)        In deciding whether and to what extent commercially sensitive information should be included in a study, analysis or survey published under subsection (1), the Commission shall have due regard for commercial confidentiality, but the interests and welfare of consumers shall be its paramount consideration.

(6)        A person who—

(a)        intentionally prevents the Commission from performing a function conferred by subsection (1),

(b)        intentionally obstructs or hinders the Commission in the performing of such a function,

(c)        without reasonable excuse, fails to comply with a requirement made to the person in accordance with subsection (4), or

(d)        in purporting to comply with a requirement made under subsection (4) to provide information, provides the Commission with information that the person knows, or ought reasonably to know, is false or misleading in a material respect,

is guilty of an offence and is liable—

(i)         on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months or both, or

(ii)        on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years or both.

(5)        Summary proceedings for an offence under this section may be brought and prosecuted by the Commission.”.

Short title and collective citation and construction

2. (1) This Act may be cited as the Consumer and Consumer Protection (Excessive Pricing) Act 2023.

(2)   This Act and the Competition and Consumer Protection Act 2014 may be cited together as the Competition and Consumer Protection Acts 2014 and 2023 and shall be construed together as one Act.