Senate Pricing Inquiry Leads to Contempt Threats for Supermarket CEO

high-angle photography of grocery display gondola

During a heated parliamentary hearing on checkout prices, supermarket executives defended their policies, expressed regret to suppliers, and even avoided the threat of jail time.In response to questions from the Senate on supermarket prices, Woolworths CEO Brad Banducci and Coles CEO Leah Weckert both said the industry was still competitive despite the size of their duopoly.Brad Banducci, the CEO of Woolworths, has been threatened with contempt by the Senate investigation into supermarket pricing for his refusal to provide straightforward answers

.The Senate committee threatened to hold Mr. Banducci in contempt and threatened to fine him $5,000 or send him to prison for six months.The CEO of Woolworths was in Canberra to respond to enquiries from senators regarding the pricing practices of the large supermarket chain.However, things took a wrong turn when Mr. Banducci was asked whether "return on equity" was a significant indicator of corporate profitability by committee chair, Greens senator Nick McKim.

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Senator McKim and Mr. Banducci's back and forth got so repetitive that Mr. Banducci was threatened with jail time if the committee found him in contempt.

Today I took on the Woolworths CEO about their huge profits. Australians have been paying too much for the basics of life and it needs to stop now. Only the Greens will take on the supermarket duopoly.

Source : X Nick Mckim

Sen. McKim was satisfied with Mr. Banducci's responses after he acknowledged not knowing the Woolworths Group's return on equity for the previous fiscal year.

The Senate committee's chairman, Greens senator Nick McKim, stated that the investigation has heard evidence that the big supermarkets exert pressure on suppliers and customers by using their market dominance:

You’ve used this market dominance to put the squeeze on your suppliers including farmers, to force down wages, to compromise staff safety and to price gouge your customers.

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