Commissioner for Prices and Consumer Affairs (SA) v Charles Moore (Aust) Ltd

The High Court of Australia considered an appeal by the Commissioner for Prices and Consumer Affairs (SA) against a decision of the Supreme Court of South Australia concerning the application of the *Prices Justification Act 1973* (SA) to Charles Moore (Aust) Ltd. The dispute centred on whether the Commissioner had the power to require the company to provide information relating to its pricing of goods, specifically regarding the cost of goods sold.

The central legal issue before the High Court was the interpretation of section 17(1)(a) of the *Prices Justification Act 1973* (SA), which empowered the Commissioner to require a company to furnish information and produce documents relating to its business. The court had to determine whether the phrase "cost of goods sold" as used in the Act encompassed the cost of acquiring goods for resale, or if it was limited to the cost of producing goods.

The High Court, by majority, held that the Commissioner's power under section 17(1)(a) extended to requiring information about the cost of acquiring goods for resale. The majority reasoned that the ordinary meaning of "cost of goods sold" in a commercial context includes the cost of acquiring inventory that is subsequently sold. They rejected the argument that the term was confined to manufacturing costs, finding that such a narrow interpretation would unduly restrict the Commissioner's ability to investigate prices and would not align with the broad purpose of the legislation.

The appeal was allowed, and the order of the Supreme Court of South Australia was set aside.