Big Risks for Food Retailers in new Anti-predatory pricing laws

Small business operators have long claimed that the large supermarkets were pushing them out of the market with “below cost selling” pricing strategies. In June 2007, the Federal Government introduced the Trade Practices Legislation Amendment Bill (No. 1) 2007 (‘the Bill’) which among other changes, included provisions to clarify the law on predatory pricing. Later in September, the government accepted and incorporated what has now become known as the ‘Birdsville Amendment’ which made sweeping changes to the law on predatory pricing. The Bill as amended was passed on 18 September 2007 to await Royal Assent (before coming into force). This article looks at the new laws of predatory pricing and their potential impact.

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