A big company in Australia has been caught using the introduction of the new carbon tax as an excuse to raise prices.
Radio New Zealand's Sydney correspondent reports Brumby's, a major bakery franchise, faces a possible fine of $A1.1 million.
Managing director Deane Priest earlier told franchisees to lift their bread prices this month and blame it on the new tax.
The company says Mr Priest tendered his resignation on Thursday afternoon.
The ABC reports he had issued a newsletter which suggested franchisees increase prices during June and July and "let the carbon tax take the blame".
Brumby's is part of the Retail Food Group, which also owns Donut King and Michel's Patisserie.
On Wednesday, Assistant Treasurer David Bradbury described Brumby's behaviour as "reprehensible" and accused the company of trying to "rip-off" their customers.