gouging

Retailers charging “beyond outrageous” prices for rapid antigen tests are being referred to the federal police for investigation, as supply issues continue to hamper Australia’s testing regime.

The referrals were disclosed by the Australian Competition and Consumer Commission as union leaders accused the federal government of putting workers “in harm’s way” by failing to provide free and accessible rapid antigen tests.

Union leaders said after an “emergency” meeting on Monday that free rapid antigen tests were needed for the whole community, not just essential workers, and they vowed to write to all employers urging them to protect employees.

The chair of the ACCC, Rod Sims, said on Monday the consumer watchdog had received many reports of price gouging, which is now illegal under new laws that prevent profit margins of more than 20% on tests.

With reports of retailers charging more than $30 for a single hard-to-find rapid testing kit, Sims said the regulator was preparing to take action on the “beyond outrageous” price markups.

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Back in 2020:

The market pressures caused by COVID-19 have taken consumers on a roller-coaster ride in 2020.

At times, basic items like toilet paper, hand sanitiser and flour have been scarce or sold at highly inflated prices.

Fights have broken out in shopping aisles, prompting the introduction of rationing.

Medical supplies have also been affected, with one company charging $786 for a single box of face masks.

Some of these chaotic scenes and shady practices could potentially have been avoided with a little-known piece of legislation, according to former NSW Fair Trading Commissioner Rod Stowe.

The Prices Regulation Act of 1948 gave the NSW Government the power to set a maximum price for a designated product or service.

The measure was introduced to limit the cost of items like bread and milk after World War II, but it was considered "archaic" and repealed by the Berejiklian Government last year.

In a statement, the Government said many of the Act's provisions were already covered through other legislation, but Mr Stowe strongly disagreed.

"This was important legislation that ensured there was a mechanism that could protect consumers from exploitative prices," he told ABC Radio Sydney's Breakfast program.

While Government intervention in the marketplace would be an extreme scenario, Mr Stowe said the threat of setting a price could be sufficient.

"You could actually warn people involved in these practices that the Government could move to set a maximum price," he said.

"You had a pretty big stick to wave at people that we don't have now."

The legislation also allowed the Government to establish an inquiry into pricing that could be targeted at a particular region or locality.

"Back in the 1990s, we were using it to deal with scalping events, like the Rugby League Grand Final," Mr Stowe said.

Read more:

https://www.abc.net.au/news/2020-07-25/law-to-prevent-covid-19-style-price-gouging-axed-in-2019/12489408

Cartoon at top : The Bulletin, 1943, Norman Lindsay...

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