Competition and Consumer (Price Inquiry—Perishable Agricultural Goods) Instrument 2020

Overview

The Competition and Consumer (Price Inquiry—Perishable Agricultural Goods) Instrument 2020 was enacted by the Australian Competition and Consumer Commission (ACCC) to address concerns about price determination in the markets for perishable agricultural goods. This instrument was made under section 95L of the Competition and Consumer Act 2010, with the aim of facilitating a comprehensive inquiry into the supply of these goods. The ACCC is mandated to hold an inquiry into the markets for the supply of perishable agricultural goods, such as meat products, plants, dairy products, and eggs, excluding certain areas like State or Territory authority supplies, exempt supplies, and reviews of specific laws or programs. The instrument came into effect on the day after its registration, with the inquiry itself commencing on 31 August 2020. This initiative aims to ensure transparency and fairness in the pricing mechanisms of these essential goods within the competitive marketplace.

Scope and Application

The Competition and Consumer (Price Inquiry—Perishable Agricultural Goods) Instrument 2020, made under section 95L of the Competition and Consumer Act 2010, mandates the Australian Competition and Consumer Commission to conduct an inquiry into the markets for the supply of specific perishable agricultural goods. The instrument applies to various goods and services, including animal meat products, plants, fungi, dairy products, and eggs of a domestic hen, but excludes supplies by State or Territory authorities, exempt supplies, and reviews of laws, regulations, Commonwealth programs, or policies unrelated to competition and consumer protection. The instrument's jurisdictional reach extends across the Commonwealth, a State, or a Territory, ensuring that the inquiry encompasses all relevant entities and industries within these jurisdictions. The inquiry, which began on 31 August 2020, is specifically tailored to focus on the described goods and services, without targeting any particular person or persons involved in their supply. The instrument's application may be further extended or restricted through subordinate instruments, although the primary focus remains on the outlined scope and exclusions.

Key Provisions

The main sections of the Competition and Consumer (Price Inquiry—Perishable Agricultural Goods) Instrument 2020 require the Australian Competition and Consumer Commission (ACCC) to conduct an inquiry into the markets for the supply of certain perishable agricultural goods. This inquiry must be held in accordance with the Competition and Consumer (Price Inquiry—Perishable Agricultural Goods) Direction 2020 (section 5). The inquiry is limited to specific types of goods, including animal meat products, plants and fungi, dairy products, and eggs of a domestic hen, and does not extend to supplies by State or Territory authorities, exempt supplies, or reviews of Australian law or Commonwealth policies (section 5(2)-(3)). The commencement of the inquiry is set for 31 August 2020 (section 6). The Act imposes certain obligations on the ACCC in conducting the inquiry. It mandates that the inquiry must focus on the supply markets for the specified perishable agricultural goods, excluding certain types of supplies and reviews of laws and policies. This includes a detailed examination of the market dynamics, pricing structures, and practices related to the supply of the targeted goods, ensuring that the focus remains on the core aspects of competition and consumer protection within these markets (section 5(2)-(3)). The ACCC must also ensure that the inquiry adheres to the directions set out in the Competition and Consumer (Price Inquiry—Perishable Agricultural Goods) Direction 2020. There are no explicit offences, penalties, or civil/criminal consequences outlined in the provided sections of the instrument. However, failure to comply with the inquiry directions or the obligations set out in the instrument could potentially lead to legal challenges or consequences under the Competition and Consumer Act 2010 or other relevant legislation. The maximum penalties for breaches of the Competition and Consumer Act 2010 can include substantial fines and, in some cases, imprisonment, depending on the nature and severity of the breach. The specifics of penalties would be governed by the broader legislative framework rather than this particular instrument.