ACCC advises recent pricing of rapid antigen tests could be unconscionable

NATIONAL

The Australian Competition and Consumer Commission (ACCC) has been vocal in its concerns over the retail pricing of rapid antigen tests, often costing $20 to $30 for a single test, with reports a single test can be as high as $70 to $100. This may be considered unconscionable in the eyes of the ACCC, in light of rapid antigen tests costing between $3.95 and $11.45 for a single test at wholesale price.

In mid-January 2022, the ACCC had received approximately 1,800 reports from the public surrounding the pricing of rapid antigen tests. Between 25 December 2021 and 12 January 2022, the number of reports received, based on industry areas, were: • Pharmacies: 879 reports • Convenience stores, tobacconists, and supermarkets: 283 reports • Petrol stations: 272 reports. Several businesses have the ACCC’s attention due to repetitive reporting by the public. More worrying to the ACCC, some retailers are refusing to provide receipts or providing incorrect receipts to consumers. Some reports include a convenience store recording the sale of rapid antigen tests as a ‘sandwich’, while other retailers only accept cash, simultaneously refusing to issue a receipt, despite a customer’s request for one. This is no small issue as a refusal to provide a receipt when requested by a customer for a purchase of $75 or more is a breach of the Australian Consumer Law.

The pricing of rapid antigen tests is a matter the ACCC takes very seriously and has established a team to work through the reporting and investigate the issue further. The ACCC has publicly advised that they will not be shy to name and shame suppliers and retailers who, in their eyes, are doing the wrong thing.

Whilst businesses are able to set their own prices, they are not permitted to make false or misleading statements about the reason for high prices, and must set prices independently of their competitors, and not collude about pricing.

In certain circumstances, excessive pricing of essential goods or services may be found to be unconscionable. The ACCC has stated that they will continue to monitor the situation and will take appropriate action under their existing powers.

Further, anyone who has evidence of price fixing cartels can contact the ACCC https://www.accc.gov.au/ contact-us/contact-the-accc/reporta-consumer-issue or via our webform https://www.accc.gov.au/contactus/contact-the-accc/report-an-issueaffecting-your-business