☕️ Supermarket review proposes large fines

Good morning!

In case you missed it, overnight there was a total solar eclipse in the U.S.

I actually heard my brother ask my dad to explain the eclipse to him the other day. He said “no sun”.

But I can explain it: A total solar eclipse is when the moon completely covers the face of the sun, which darkens the sky, as if it were dusk.

We weren’t able to see this one in Australia - the next one we can see is in 2028.

I’ve got 10 seconds

Quote of the day

“People are free to say what they like, and the great thing is what people are saying about Adelaide right now is overwhelmingly positive.”
A spokesperson from South Australia Tourism Commission after its request to the media to not use nicknames like “RADelaide” for the AFL Gather Round over the weekend received backlash.

Stat of the day

$CA2.4 billion ($AU2.7b)
How much the Canadian Government plans to invest in Artificial Intelligence (AI), including tech infrastructure, training for businesses, and support for workers whose jobs might be impacted by AI.

Today in history

2005
Charles and Camilla married in Windsor Guildhall. Queen Elizabeth II did not attend the ceremony, but did attend a blessing in St George’s Chapel after.

I’ve got 30 seconds

Some headlines from this morning:

• The Australian Government has appointed a Special Adviser, Air Chief Marshal Mark Binskin, to investigate Israel's response to an airstrike that killed seven aid workers in Gaza last week, including an Australian woman. The Israeli Government’s own investigation into the strikes concluded it “should not have occurred”. Foreign Minister Penny Wong said Australia's Special Adviser will examine the "sufficiency and appropriateness of steps taken by the Israeli Government" in response to the strikes, including what measures it has adopted to prevent it from happening again. Prime Minister Anthony Albanese said: “We have made it very clear [to Israel] that these deaths are utterly inexcusable and that action is needed to ensure that such a tragedy is never repeated.”

• The foal of Australian racehorse Winx has been sold for a record-breaking $10 million. Winx claimed a record-winning streak of 33 races before she was retired in 2019. Bidding for her 18-month-foal began at $2 million at an auction in Sydney. Despite international interest, she was sold to Winx's former part-owner Debbie Kepitis.

I’ve got 1 minute

A boat arrived in a remote part of WA’s Kimberley region on Friday, triggering a police search for a man who was part of the group.

He was later found at an air base on the northern tip of WA.

It’s the second such arrival in remote WA over the past month.

Now, the Federal Government is under pressure to explain how the boats were able to make it to Australian shores without being intercepted by border authorities.

Sovereign borders

The Federal Government rolled out ‘Operation Sovereign Borders’ in 2013 to intercept boats illegally trying to cross Australia’s borders.

The Australian Border Force (ABF) has the power to turn boats back if they suspect people are trying to enter the country without a visa.

The plan was designed to curb the operations of people smugglers, who are paid to illegally transport people between countries.

WA arrival

Last Friday, WA police confirmed a group of people arrived by boat in the Mitchell Plateau area in the state’s far north, known for its rugged landscape and hot conditions.

A man became separated from the group, prompting a wide search.

He was found two days later near the Mungalalu-Truscott Airbase, where he received medical treatment.

Government response

When asked about the boat arrival on Sunday, Prime Minister Anthony Albanese insisted Australia’s border policy has not changed.

“We have a very large coastline. What is clear though is that people who are unauthorised arrivals won’t be settled in Australia.

“Operation Sovereign Borders principles will apply... in this case”.

Opposition

Shadow Home Affairs Minister James Paterson said the people who arrived by boat appeared to have been taken to an offshore processing facility in Nauru, a small island country in the Pacific.

Paterson accused the Prime Minister of losing “control of Australia’s borders” and “watering down Operation Sovereign Borders”, partly in reference to the government’s decision last year to give thousands of asylum seekers permanent residency.

I’ve got 2 minutes

Supermarkets could be fined billions for major abuses of power under a new proposal

A review of supermarkets has proposed a mandatory code that could see retailers fined billions of dollars for breaches.

The Federal Government ordered the review in January amid growing concern about supermarkets setting unfair prices for customers.

An interim report has made several recommendations ahead of the review’s final findings in June.

Price gouging

Coles and Woolworths control roughly two-thirds of Australia’s supermarket sector. Each company reported profits of more than $1 billion last financial year.

The supermarkets have faced mounting accusations of underpaying farmers for their produce and charging unreasonably high amounts for some of their products, or ‘price gouging’.

Australian businesses can legally charge what they want for products – even if customers think it’s too high – but cannot lie about the reasons for their prices.

Code of conduct

Since January, former Labor MP Craig Emerson has led a review of the voluntary Food and Grocery Code of Conduct, developed by supermarket retailers in 2015.

It was designed to ensure fair business practices between supermarkets and suppliers. Coles, Woolworths, Aldi and IGA suppliers Metcash are all signed on to the code. However, there are no penalties for breaching it.

Emerson shared interim findings this week.

The proposals

The interim review recommended a mandatory code of conduct and strong enforcement from the Australian Competition and Consumer Commission (ACCC) to drive competition in the supermarket sector.

Emerson called for severe penalties for supermarkets found in breach of the code. He proposed fines for major breaches calculated at 10% of total annual sales.

Under this modelling, penalties for Coles and Woolworths could surpass $4 billion.

The ACCC would be responsible for identifying breaches and pursuing legal action against retailers, on suppliers’ behalf.

Disputes could be heard in court, or settled through compensation payments.

The review also warned against the Federal Government forcing supermarkets to sell stores to limit market dominance. It found a lack of potential buyers could lead to store closures and job losses.

Government response

Treasurer Jim Chalmers described the current code as being “too easy to walk away from”, and must change.

Chalmers said the government would support a mandatory code of conduct and significant penalties for breaches.

The Treasurer backed Emerson’s opposition to forcing supermarkets to sell off some of their stores, saying there are “better, more effective ways” to improve competition.

What happens next?

Parts of the report will now be subject to public feedback ahead of a final report due in June.

Several other inquiries into the conduct of Australia’s supermarkets are already underway. This includes a Senate inquiry launched in December, and an ACCC probe due to table its findings next year.

Consumer group CHOICE is also developing price transparency reports, to be published every three months for the next three years. They will compare and monitor prices for essential items at different supermarkets.

Supermarkets

Woolworths supported a mandatory code of conduct, suggesting it include global retailers and other Australian companies also selling grocery items.

It named Amazon, Costco, Bunnings, and Chemist Warehouse among those it thinks should be subject to the same rules as Australia’s supermarkets.

Woolworths said it would now consider the report “in detail”, and continue to assist with the review.

Coles has said it would “remain committed” to supporting both its customers and suppliers, and it would “continue to work constructively” as part of the review process.

Metcash (IGA) said it was considering the details of the report and the implications for its business, but said it had “no objection” to making the code “in its current form” mandatory.

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Over the weekend, a Boeing plane turned around after an engine cover fell off during takeoff from the U.S. city of Denver.

It’s the latest in a string of recent incidents involving Boeing aircraft. In a memo to employees last month, outgoing CEO Dave Calhoun said, “the eyes of the world are on us”.

Today on the podcast, we'll explain exactly what has happened to Boeing planes lately, and why it's got the world talking.

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Give me some good news

The 2023/24 A-League Women’s season is set to become the most attended season of any women’s sport in Australian history.

The total number of spectators at its games is expected to reach nearly 300,000 people ahead of this week’s first elimination finals.

That’s a 108% increase compared to last season, as women’s soccer continues to rise in popularity.

TDA tidbit

The cultural ministry of the conservative Russian republic of Chechnya has launched a crackdown on most music.

Per a recent statement by the ministry, music in Chechnya now can’t be slower than 80 beats per minute or faster than 116. That will limit music in the republic to anything between the tempo of Gangsta’s Paradise and The Final Countdown.

Chechen Culture Minister Musa Dadaev said Chechnya needed to embrace its traditional music and that artists needed to “rewrite” their music by June if they want to continue performing publicly.

TDA asks