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Brumby's in trouble over carbon tax exploitation

Brumby s bakery chain is in trouble after accusations of carbon tax exploitation 16000646 800482060 0 0 7005566 300

A nationwide bakery chain is in hot water after a leaked internal memo revealed the company was planning on blaming the carbon tax effect on electricity prices for a retail price hike.

"We are doing an RRP (recommended retail price) review at present which is projected to be in line with CPI (Consumer Price Index), but take the opportunity to make some moves in June and July," read the note from Brumby's managing director Deane Priest.

“Let the carbon tax take the blame, after all your costs will be going up due to it."

The message was published in a company wide internal publication, drawing criticism from the government and the public. Brumby's has issued an apology for the incident.

While the carbon price has forced many electricity suppliers across the country to raise prices, the government has taken steps to ensure retailers do not attempt to unjustly gauge customers.

The Australian Competition and Consumer Commission (ACCC) has launched a hotline for customers to report any perceived incidents of unfair trading relating to the carbon tax.

Businesses have a right to raise prices as they see fit, but any claims relating to the carbon price must be accurate and truthful, the ACCC says.

Posted by Charlie Moore.