Alleged Anti-Competitive Behavior by Woolworths
Senate Economics Legislation Committee [Part 2], , 3:42:54 to 3:51:07
Inquiry into alleged anti-competitive behavior by Woolworths employees at a Taylor Road IGA store.
Topics: Integrity
Senate Economics Legislation Committee [Part 2], , 3:42:54 to 3:51:07
Inquiry into alleged anti-competitive behavior by Woolworths employees at a Taylor Road IGA store.
Topics: Integrity
Speakers: Senator Dean Smith, Gina Cass-Gottlieb, Lauren White, Speaker 28, Senator Lisa Darmanin
>> Great. Thank you very much. If I could just turn to a second matter and again I did write to the AC about this and this is the matter involving Woolworth's employees. Um not one, not undercover, not subtle. Um my word, you know, um sorry I won't say that. um going on what Woolworth called a I think a marketing uh exercise to an IG store in Taylor Road dressed in Woolworth attire. So for full transparency I wrote to the CEO of Wworth and got a very unsatisfactory response not from her but from others in the organization. I followed up the Woolworth's CEO again asking questions in response to the letter that I got from one of um her group. Um I've not yet had a response to that, but chair could you give me an update on what if any the inquiries the AC has made in regards to this matter?
We are uh continuing to monitor and consider concerns and have um made some inquiries in relation to the behavior which we are treating as alleged anti-competitive behavior um including assessing the issue that has been raised by the Taylor Road IGA store owners about the uh Worth employees surveying their IGA store.
When you say alleged anti-competited competit anti-competitive, is that a position that you have come to or is that an allegation that others are made have made that you're inquiring into?
>> That that's an allegation that has been made by the IG store owners.
>> you said you are monitoring >> uh and responding to inquiries. Is that the same as investigating
>> and considering concerns? Yes.
considering concerns and what is the timetable or the processes that are involved in that consideration of concerns.
I >> it's too early I think to say because we need to scope it further.
>> Um have you spoken Woolworth with Woolworth and have you asked Woolworth for an explanation or an account of the matter from their perspective?
Actually uh I am do not know the answer to that. Um looking at the material that I have uh and I expect that we should take that on notice.
>> Right. It would be very strange not to have spoken to Woolworth given that this matter arose some six weeks ago.
>> Gina, can I
>> It would, wouldn't it? Sorry. It seems
that Lauren can assist
>> perhaps my understanding is that initial inquiries are being made with the IG store owners and sometimes we it's best to get that factual information first before taking the inquiries to that next step. So
>> doesn't take four to six weeks to establish the facts from the IG Taylor Road people. I went to visit the visited them myself quickly able to ascertain the facts. They wrote to me with the facts. I think they've written to you with the facts. Seems very strange not to have called Woolworth in or for an explanation.
>> I think the next step that Gina spoke to though is looking at the facts and determining whether there is any potential allegation and what more we could we would need to support any such allegations. So it does take time to to thoroughly consider
So Woolworth characterizes this as local market familiarization. Woolworth has conducted an internal review. Uh they've not yet made it available to me, but I've asked for it. They have acknowledged that this event fell well short of its own standards. Perhaps I should share my correspondence and their correspondence with me to you. And I do really do encourage you. I think it's I don't know how the owners of the IG store in Taylor Road are going to respond when they hear the evidence tonight that Woolworth has not even been approached. It's not as if they're short >> Is this common behavior from
>> Senator? I would ask CEO the AC. I would ask that we have the opportunity to provide the information to you so that we know we're all coming on the f same fact situation. um we need to be able to confirm that we've not spoken to them. Um and we're not in a position to do that at the moment.
>> Okay. But if you had spoken to them, I'm you you would know that
>> the competition team would
>> it it can it can sit within the team without uh coming to our attention. the I think Senator Smith, you're about to ask, are we aware about this conduct? uh occurring on other occasions and the answer to that is to my knowledge no. Uh in terms of um we do know there is very extensive gathering of information about competitor pricing but not that it usually would involve such a manner of it. Uh however um
>> it was brazen. >> It was brazen at a time when there's tremendous amount of scrutiny from consumers on Woolworth and its competitors and indeed from the
>> from the C
they seem a bit immune to public public concern. I'll leave it at that, but thank you very very much and I look forward to hearing about whether or not Woolworth has been engaged at this point. If it hasn't, I look forward to, you know, being reassured that it will be. Thank you very and they they have done an internal review. Chairman, they have done an internal review and I would have thought that that was a very very important first step. Thank you. Thank you. Thank you, Chair.
>> Thank you, Senator Smith. That concludes our questions for the AC. We thank you very much for coming tonight. >> Uh and we'll take a very short break while we invite our last group of Okay. Um, we are going to get moving so