Quix to compensate consumers for price exploitation

Quix convenience stores have admitted breaching the price exploitation provisions of the Trade Practices Act 1974.

The Australian Competition and Consumer Commission has agreed to a package of measures proposed by Quix to overcome the ACCC's concerns of over-pricing of the mainly beverages, confectionery and grocery products at its 99 convenience stores.

Quix operates stores across Australia, except the Northern Territory and Tasmania, retailing automotive products, groceries, fast food, and other consumable products. In conjunction with the convenience stores, Quix also sells Mobil branded petroleum.

In a formal court-enforceable undertaking Quix admitted that it had breached the Trade Practices Act 1974 prohibition on price exploitation.

"This is a significant case of price exploitation involving beverage, confectionery and grocery products at convenience stores", ACCC Chairman, Professor Allan Fels, said today. "Quix will as an immediate measure reduce the prices of some 312 products at all its stores.

"In addition to stopping the conduct, Quix will:

• commission an independent audit to assess how much it has over-charged consumers in all products in the beverage, confectionery and grocery products
• reduce prices to refund the amount over-charged, and
• advise consumers of the reduced prices by corrective notices placed in-store and in major daily newspapers in each State and Territory where it operates.

"Quix will also put into place a formal compliance program to ensure future compliance with the Act.

"The breach of the law reflected an excessively casual approach to compliance, rather than a deliberate flouting of the law. Without the cooperation of the company in responding to ACCC concerns the ACCC would have considered court action to be an appropriate response".

The ACCC has previously sought similar price reductions in other situations where it has held concerns of overcharging after the introduction of the New Tax System.

ACCC pricing surveys in May and August 2000 revealed price changes in Quix stores, following the introduction of the New Tax System that were not in accordance with ACCC expectations. Later surveys confirmed that prices stayed at the August 2000 level. These surveys related to mainly grocery products and did not include petroleum. Quix initially recognised a problem with the pricing of soap and sunscreen only, but following a thorough and time consuming examination of wholesale and retail pricing by the ACCC the company subsequently accepted that widespread over-charging was occurring.

The ACCC has conducted regular and widespread retail price surveys across an extensive range of products and locations. The surveys have been effective in helping to identify a number of cases of overcharging.

The ACCC is continuing to follow up and investigate pricing concerns relating to other businesses identified through its surveys and through consumer and business complaints.

A sample from the 312 products follows:

NOTE:

1. Amount of price reduction is the same for all stores. However, current

price may vary, therefore new price may also vary.

2. ‘Current’ Price may vary in some cases, due to ‘specials’.