New Legislation Aims to Curtail Supermarket Price Gouging: What Shoppers Need to Know

NewsFinale Journal

1 week ago

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

Delivering on a major promise from this year’s election campaign, the Albanese Government will introduce legislation that would lead to major supermarkets facing heavy fines if they are found to be price gouging.

A report from the ACCC, Australia’s consumer watchdog, earlier this year recommended action be taken against “shrinkflation”, where products become smaller but are not reduced in price, as well as greater transparency on prices and loyalty programs and regulation of promotions offered by supermarkets.

Coles and Woolworths could face greater scrutiny under draft laws being tabled by the government today. (Nine)

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).

Anthony Albanese is delivering on a promise made in this year’s election. (Getty)

Coles reported a profit of $1.08 billion at the end of the 2024-25 financial year, whilst Woolworths had a profit of $1.4 billion.

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.