‘Impoverished' shoppers getting ‘gouged' as Wexford councillor calls for creation of agency with ‘teeth to investigate anti-competitive practises'
However, with customers 'getting gouged' on a daily basis, Cllr Sheehan believes it is time to create an agency which will deliver for the ordinary, everyday shopper.
'There is no competition in the basic goods and services that we purchase and use everyday,' said the independent councillor. 'While we are an affluent nation, we feel absolutely impoverished. From the producer to the supplier to the retailer, people are getting gouged.
"What we need are two independent statutory agencies that have a laser-like focus on breaking up cartels, injecting competition and robustly defending consumer rights with a strong legislative arm to punish those deliberately blocking competition.'
In 2022, then Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar published the Competition (Amendment) Bill 2022 to give more powers to the Competition and Consumer Protection Commission (CCPC) and the Commission for Communications Regulation (ComReg) to challenge anti-competitive practices by business and protect consumers.
As a result, breaches of competition law can now be enforced through administrative actions taken by competition authorities, with maximum fines of up to €10 million or 10 per cent of total worldwide turnover, whichever is the greater.
But Cllr Sheehan said the CCPC, in its current guise, does not have 'the teeth' to investigate breaches and anti-competitive practices, and that only by splitting the organisation in two can we effectively tackle continued inflation.
'A separate competition authority could pursue any sector and issue fines accordingly, the old competition authority was a nemesis for many industries and delivered for consumers: a new version would ensure utilities, food, finance, and the supply chains would come under the spotlight to ensure that companies are not taken advantage and that prices drop to realistic levels again,' he said.
'In addition, a new consumer authority would vociferously stand up for consumer rights to ensure that companies and retailers honour the law. Both agencies could be funded by a levy on the supernormal profits of the multinationals and outlets that are literally raking it in.
'The cost of living isn't going away soon; we need agencies which are going to meet the challenge head on.'
Funded by the Local Democracy Reporting Scheme.
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