IRELAND’S CONSUMER WATCHDOG must be given more powers to investigate potential grocery price gouging, a TD has said.

Labour TD Ged Nash said his party wants the Competition and Consumer Protection Commission (CCPC) to have powers to compel supermarkets to provide commercial pricing information to ensure customers are getting the best price.

Nash told reporters that he believes the state is under resourcing the CCPC and that prices have remained high despite falling inflation rates and normalising supply chains.

Market analysis of the Irish grocery retail sector, conducted by the CCPC in 2023, found that what the concentration of stores has reduced, competition on price, quality and service had improved in recent years.

The study, commissioned by then-enterprise minister Simon Coveney, found no evidence of “excessive pricing” as a result of an abuse of dominance or external factors, such as high inflation.

Speaking today, Nash said that the scope of this study was limited by the fact that the CCPC could not compel supermarkets to provide them with a detailed price analysis of their products.

“High inflation in the grocery sector is still with us, and it is creating problems for families up and down the country,” the party’s finance spokesperson said.

“Some of the reasons why grocery prices [are not] declining well ahead of the general rate of inflation needs closer interrogation,” he added, claiming that inflation as a result of the illegal invasion of Ukraine by Russia is falling, but prices are not.

The CCPC noted in its 2023 report that there was no evidence that international price interventions, such as fluctuating interest rates, had benefitted customers in grocery stores. There are significant concerns over transposing of these rates in Ireland.

Its report also found that changes in supplier prices did “not appear to be immediately reflected in retail prices”. The CCPC theorised at the time that the lag in the reduction of prices may relate to outstanding contracts.

Nash said the under-resourced CCPC needs additional powers so that supermarkets cooperate with it to provide detailed pricing information. He claimed that the bill is focused on transparency in the sector.

Asked by The Journal if sharing of commercially sensitive information may impact competition in the sector, Nash pointed to the Central Bank, which commonly requests that lenders publish their pricing policy.

The Louth TD said he does not believe there should be an exception given to the grocery retail sector. He added that the bill makes “very, very clear” that the information requested from supermarkets would be used only so that the CCPC fulfils its remit.

“Principally, what we’re talking about here is ensuring that there’s greater transparency in the pricing models and fairness for consumers to ensure that there are no [supermarkets] operating in the sector in Ireland that are abusing, what we might describe as, a dominate position.”

The government will not oppose Labour’s motion on the issue, with a spokesperson for the Tánaiste stating that the primary objectives of the bill is in line with government policy of increasing transparency, clarity and fairness for consumers.

As part of the development of the Action Plan on Competitiveness and Productivity, the government has given a commitment that competition and consumer protection enforcement will be strengthened.

The programme for government gives a promise to further strengthening the CCPC’s powers, while Minister for Enterprise Peter Burke’s department is currently developing a related Miscellaneous Bill.