A recent survey by Finder has unveiled a significant wave of public sentiment regarding grocery pricing in Australia, revealing that a large majority of consumers believe they are being unfairly charged at supermarkets. The survey indicates that 72% of respondents feel that supermarkets have been and still are engaging in price gouging. Only a mere 4% of over 1,000 participants believe supermarkets never practice this pricing strategy, highlighting a stark distrust in the retail sector as grocery bills continue to rise.
As grocery costs escalate, with households currently spending an average of $206 per week—up from $185 three years ago—many families are increasingly concerned about their expenses. Notably, one-third of those surveyed reported groceries as a top three financial stress point in their lives. Finder’s personal finance expert Sarah Megginson remarked that the staggering level of distrust in essential grocery pricing is unprecedented, especially as families deal with climbing expenses without any significant return to previously lower prices.
To address these public concerns, new legislation will be implemented from July 1, aimed at curbing excessive pricing within the supermarket sector. This law specifies that large retailers cannot charge prices that significantly exceed the cost of supply alongside a reasonable profit margin. Violations could result in substantial fines—up to $10 million per breach, or three times the undue benefit gained, or 10% of the company’s turnover over the last year.
These regulations primarily target major supermarket chains with annual revenues exceeding $30 billion, namely Coles and Woolworths, while exempting retailers like Aldi. Consumer group CHOICE has been advocating for a broader price gouging ban that would encompass all market sectors, similarly to laws already in place in the European Union and several U.S. states during emergencies.
The Australian Competition and Consumer Commission (ACCC) is tasked with enforcing these new regulations, and indications suggest they may pursue legal action against Coles and Woolworths. Both companies, however, contest the allegations of price gouging, asserting that a lack of evidence was found during an ACCC investigation. They attribute rising grocery prices to increased costs associated with supply chains.
In response to ongoing scrutiny, Coles emphasised its commitment to delivering value through promotions and discounts, while Woolworths claimed it remains dedicated to clear and accurate pricing practices. Despite these reassurances, the ACCC is also probing potential misleading advertising regarding discount pricing, where it is alleged the retailers have inflated prices prior to sales promotions.
This mounting pressure on grocery chains reflects a growing public frustration and demand for accountability in the supermarket sector as consumer trust continues to wane in the face of rising living costs.
