Dáil Éireann Debate, Thursday - 13 October 2022
172. Deputy Brendan Howlin asked the Tánaiste and Minister for Enterprise, Trade and Employment the actions that he has taken to date to ensure that bread retailers are not over-charging for this basic food stuff; if his attention has been drawn to bakers who are concerned that some retailers are inflating the price of bread above that being charged to them by suppliers; and if he will make a statement on the matter. [50792/22]
Amharc ar fhreagraThe factors contributing to inflation at the present time have been well documented. These factors are generally accepted to include global supply chain issues relating to rebounding global demand post COVID-19; and the impact of the invasion of Ukraine on international commodity supplies especially grain/oilseeds and energy supplies. These issues are significant and are having impacts right across the economy.
In relation to the remit of my Department which includes responsibility for competition and consumer rights law, the Competition and Consumer Protection Commission (CCPC) is the independent statutory body responsible for promoting compliance with, and enforcing, competition and consumer protection law in Ireland.
In relation to the CCPC’s mandate in this area, their role is to ensure that prices are set independently by competing businesses, and those prices are then prominently displayed at the point of sale thereby enabling consumers to make informed choices about which supplier offers the best value. The CCPC do not tell businesses what prices to charge. Generally, traders in Ireland are free to set and change their prices for goods and services. Lower prices play a key role in attracting consumers, and traders compete to keep their prices low enough to attract consumers.
Notwithstanding the issues around supplies and their costs, businesses must behave competitively. The Competition and Consumer Protection Commission (CCPC), which is independent in the exercise of its functions, has powers to:
- Enforce competition and consumer protection rules that ensure businesses set prices independently and communicate them appropriately to consumers;
- Ensure that mergers do not result in a significant lessening of competition, which carries a risk of higher pricing;
- Help to educate and inform consumers so they are able to shop around, and in doing so add to the competitive pressure on businesses when they set their prices; and
- Conduct a market study if it suspects that there is a market failure or dysfunction that results in pricing that is causing consumer harm.
- Excessive pricing may be illegal if a business is in a dominant position, where it faces little competition, and its customers have little bargaining power. When a business is dominant, it is not allowed to abuse its position. Businesses and their pricing decisions are constrained by the need to compete rather than by any legal obligation.
When the CCPC receives complaints about pricing it assesses them to see if they indicate a possible breach of competition or consumer protection law. It can also take action on its own initiative when it suspects there may have been a breach.
