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Coles, Woolworths to Face Ban on Excessive Pricing From July

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Coles, Woolworths to Face Ban on Excessive Pricing From July

Australia's biggest supermarket chains are set to face a ban on excessive pricing as the country's consumer watchdog rolls out new rules on grocery price gouging.

The Australian Competition and Consumer Commission will start tracking Woolworths' and Coles' compliance with a new ban on excessive pricing, effective July 1, under which the regulator will decide what constitutes a reasonable margin, among other factors.

Under ACCC's guidelines, the penalty for breaching the prohibition or record-keeping requirement is the greater of AU$10 million, thrice the value of the benefit gained, or 10% of the company's annual turnover from the previous year.

"We will focus our attention on products where excessive pricing is likely to cause the most harm to consumers," said ACCC acting Chair Catriona Lowe.

This comes after Australia's Federal Court served a ruling against Coles in May over a 2024 case that alleged the company deceived shoppers by advertising discounts on products that, in many cases, were being sold at higher prices.

The 2024 case, brought by the ACCC, also had similar allegations against Woolworths, but the Federal Court has yet to deliver a judgment on the matter.

Consumers worldwide are struggling with a cost-of-living crisis, while Australia's annual inflation rose 4% in May, with food and non-alcoholic beverages remaining the second-biggest contributor after housing.

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