Supermarkets and retailers have warned a authorities ban on grocery value gouging might backfire, criticising the transfer as unprecedented and unfair for focusing on solely the largest chains.
The Albanese authorities will announce on Sunday that it could ban value gouging in Coles and Woolworths, following a damning report from the competitors watchdog earlier this yr that exposed Australian supermarkets have been among the many most worthwhile on the earth.
Coles and Woolworths make up about three-quarters of the grocery store sector.
The Australian Competition and Consumer Commission (ACCC) launched an inquiry into the massive supermarkets in 2024 after they have been accused of failing to go on financial savings to shoppers throughout a cost-of-living disaster, however didn’t show the businesses have been value gouging.
Under the amended Food and Grocery Code, supermarkets should solely cost an inexpensive margin on merchandise. The new guidelines come into power on July 1, 2026.
“We’re cracking down on grocery store value gouging to assist Australians get a greater deal on the checkout,” Treasurer Jim Chalmers and Assistant Minister for Productivity and Competition Andrew Leigh mentioned in a joint assertion.
“The ban will prohibit very massive retailers from charging costs which can be extreme when in comparison with the price of the availability plus an inexpensive margin.”
The ACCC will get a $30 million funding increase to police the brand new laws. As has beforehand been reported, Coles and Woolworths will face most penalties of $10 million if discovered to have breached the code.
Australian Retail Association chief Chris Rodwell warned regulating revenue margins risked making staples costlier, and grocery costs have been principally pushed by enterprise prices, comparable to vitality and freight.
“The ACCC Supermarkets Inquiry discovered no proof of extreme pricing,” he mentioned.
