Allegations of price gouging by supermarkets


Assignment task:

In response to allegations of price gouging by supermarkets New South Wales decides to launch an Inquiry into prices charged by supermarkets.

Section 28 of the Fair Trade (Unfair Prices) Act 2020 (NSW)(a fictitious statute) allows such Inquiries to be conducted where the Minister directs the Department of Fair Trading (the Department) to conduct such Inquiries.

Section 42 of that Act states that such enquiries are to be conducted in accordance with the principles of procedural fairness.

Section 102 of that Act states that the Act is to be the only legislation dealing with the topics it deals with and repeals all previous legislation on those topics.

During its Inquiry into price gouging by supermarkets the Department states that it intends to find that the supermarket chain Cottonworths has been taking advantage of high inflation to charge unfair prices to consumers for the purpose of increasing its profits.

Cottonworths asks the Department for details as to why it thinks that it might come to such a conclusion so that Cottonworths can respond.

The Department replies that, as it has not delivered its final report, it does not need to supply such details to Cottonworths.

It also states that even if such a decision was in its final report it has sufficient information to come to such a conclusion and so would not be asking Cottonworths for its response anyway.

Cottonworths believes that the statement by the Department as to its intended finding is damaging to its reputation and wants details as to the proposed finding and a chance to respond to them.

Advise Cottonworths as to its prospects in judicial review of successfully arguing that the actions of the Department breached the requirements of procedural fairness.

Please Note This Is Administrative Law Australia

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