New Act formally abolishes ban on below-cost selling
20/03/2006 - 07:20:10The state ban on below-cost selling of groceries is being abolished from today as part of the new Competition Act.
From today, shops and supermarkets will be allowed to sell groceries for less than cost price.
The move is being welcomed by consumer groups, which say the ban introduced as part of the 1986 Groceries Order was keeping prices artificially high.
However, groups representing small retailers say the removal of the ban will effectively kill off the local shop.
They say large supermarkets have the financial power to sell products at a loss until such time as they have put their smaller competitors out of business.
