The Federal Government is set to unveil new legislation today aimed at curbing price gouging practices by leading supermarket chains.

Although the recent report stops short of labeling Coles and Woolworths as a duopoly, it highlights that “Australia’s supermarket industry is heavily concentrated, characterized by an oligopoly dominated by Coles and Woolworths.”

During the election campaign in April, Prime Minister Anthony Albanese expressed his administration’s commitment to addressing the report’s findings earnestly.

“Labor will outlaw price gouging by supermarkets,” he declared, outlining plans to establish a task force dedicated to implementing an excessive pricing scheme. This initiative would be overseen by the Australian Competition and Consumer Commission (ACCC).

In its latest financial statement for 2023, ALDI reported a profit of $402 million.

The new laws introduced by the government today are the second political move to regulate supermarkets, with the Competition and Consumer Amendment (Make Price Gouging Illegal) Bill currently before the Senate.

Coles and Woolworths are also facing a joint class action over allegations they misled shoppers with discount pricing claims.