The Australian Government plans to double competition and consumer law penalties in response to recent fuel price gouging concerns.
Responding to concerns about price gouging in the fuel sector due to significant fuel price increases amid recent conflict in the Middle East, the Australian Government has announced a range of measures to provide a ‘fair go for consumers at the bowser’. This includes a doubling of maximum penalties under the Competition and Consumer Act (2010) (CCA) (including for false or misleading conduct and cartel conduct), along with other measures such as increased fuel price monitoring by the Australian Competition and Consumer Commission (ACCC).
Increased Penalties
The Government announced that it will double penalties for false or misleading conduct and cartel conduct to a maximum of $100 million. Although the increased penalties are in response to competition and consumer concerns in the fuel sector, the increased penalties will apply across the economy to most forms of prohibited conduct under the CCA and Australian Consumer Law (ACL).
The current maximum penalties for certain offences and civil contraventions of the CCA is the greater of:
- $50 million;
- three times the value of the benefit obtained; or
- 30% of a corporation’s adjusted turnover during the breach turnover period (if the Court cannot determine the benefit obtained).
The Government introduced legislation on 25 March 2026 to increase the first limb of the maximum penalty calculation above to $100 million. This change will apply to all offences and civil contraventions of the CCA subject to the current maximum penalties above. This includes:
- cartel conduct (both criminal offences and civil contraventions);
- restrictive trade practices under Part IV of the CCA (including misuse of market power, exclusive dealing and resale price maintenance);
- breaches of provisions of the CCA relating to mergers, including the new mandatory merger regime (such as failing to notify the ACCC of an acquisition that requires notification, putting into effect an acquisition that is awaiting a determination by the ACCC, or making an acquisition that would result in a substantial lessening of competition);
- breaches of the unfair practices, safety or information standards provisions of the ACL (including false or misleading representations in relation to goods/services, supplying goods/services that do not comply with safety standards, and supplying goods/services that do not comply with information standards);
- breaches of the News Media Bargaining Code; and
- ‘big stick’ prohibited conduct provisions relating to the electricity sector.
This change will not apply to penalties for industry codes or the Consumer Data Right.
The current maximum penalties came into force in November 2022 and the $50 million figure was a five-fold increase on the penalties that existed at the time. If the change to $100 million is made this year, this will designate a ten-fold increase in five years.
Rationale for Increased Penalties
Although the announcement on increased penalties and the explanatory memorandum for the legislation focus on the fuel industry, the Government’s concerns regarding anti-competitive behaviour and price gouging extend across the economy.
In the explanatory memorandum, the Government explains that the situation in the Middle East has dramatically increased the global price of fuel. These commodities underpin many sectors in Australia’s economy and therefore products across all sectors may see price increases. The Government is concerned that companies across the economy may exploit this situation to unjustifiably engage in anti-competitive conduct, or false or misleading conduct by raising prices beyond the actual increase in their input costs.
ACCC Response
Following the Government’s announcement, the ACCC welcomed the proposed increase to penalties and has signalled it will seek the highest penalties appropriate in any court cases it commences. Earlier this year in her speech announcing the ACCC’s compliance and enforcement priorities for 2026-27, ACCC Chair Gina Cass-Gottlieb stated that the ACCC will continue to seek high penalties where conduct causes serious harm.
Next Steps
This legislation still needs to be passed by Parliament. The new maximum penalties will then apply to relevant contraventions of the CCA that occur on or after the commencement date of the legislation.
Businesses can expect the ACCC to continue taking enforcement action in relation to competition and consumer harm and seek significant penalties.
Image Credit: Eric Mclean / Unsplash / Licence / Remixed to B&W and resized
