A Senate committee examining supermarket prices handed down its final report on Tuesday, laying out 14 recommendations for reform in the sector.

The report called for divestiture laws to break up the supermarket duopoly of Coles and Woolworths, should supermarkets carry out “unconscionable conduct”.

The Greens-led inquiry also called for the government to set up a prices and competition commission to examine the price setting practices of supermarkets as well as other industries.

Discounts across supermarkets should also be standardised, along with the promotional terms used to stop fake discounts.

It also recommended the Food and Grocery code of conduct, which governs the relationship between supermarkets and supplies, be made mandatory.

The code as it stands is voluntary and a separate review carried out by former Labor minister Craig Emerson also pushed for a mandatory code.

The Senate committee called for the code to be made mandatory by September 30, with it also taking in codes of conduct for the dairy and horticulture industry.

Other recommendations included providing the consumer watchdog with powers to investigate land banking, the practice where supermarkets purchase land with no intention of developing it, in a bid to stop competitors using the site.

The inquiry’s chair, Greens senator Nick McKim said the recommendations would force large supermarkets to be fairer towards consumers at the check-out, such as the laws banning price gouging.

“This would mean that corporations couldn’t just arbitrarily increase prices without facing consequences from the courts,” he said.

“This would be a significant new power to stop unreasonable pricing that has been rampant for years because of a lack of competition.”

Earlier on Tuesday, Prime Minister Anthony Albanese said increased political pressure on supermarkets had led to price reductions.

However, he said the government would consider the findings of the report.