GROCERY PRICE GAUGE: Fury as Government Cracks Down on ‘Excessive’ Supermarket Prices – But Will it Really Save You Money?
- Sneaky supermarkets to be slapped with $10 MILLION fines for price gouging under new government rules
- Major retailers like Coles and Woolworths fume over ‘unfair’ regulations, claiming they’ll drive up costs for shoppers
- Treasurer Jim Chalmers vows to give families a ‘fairer go’ at the checkout – but critics say the move is ‘misplaced’ and ‘lacking evidence’
Australia’s supermarket giants are seething over the government’s new crackdown on ‘excessive’ pricing, with threats of $10 million fines for breaches. The move, set to take effect on July 1, aims to curb price gouging and give families a fairer deal at the checkout. But the big retailers are fighting back, claiming the regulations are ‘unfair’ and will ultimately drive up costs for shoppers.
‘This is all about getting a fairer go for families in their weekly shop,’ Treasurer Jim Chalmers declared, as he announced the new rules. But Coles and Woolworths are furious, insisting they’re being unfairly targeted and that the regulations will have the opposite effect. ‘At a time when the focus should be on easing cost-of-living pressures, these regulations risk doing the opposite,’ a Coles spokesperson fumed.
The supermarket giants claim their profit margins are already slim, with Coles making just $2.43 in profit for every $100 spent by customers. But the government is undeterred, with Chalmers vowing to give the competition watchdog the powers it needs to hold supermarkets to account. ‘One of the best ways to ease the cost of living for Australians is to help people get fairer prices at the checkout, and that’s what this is all about,’ he said.
However, critics argue the move is ‘misplaced’ and ‘lacking evidence’. The Business Council of Australia’s CEO Bran Black blasted the price gouging ban, saying it’s ‘unprecedented’ and will create an ‘uneven playing field’ that favours foreign-owned retailers. The Australian Retailers Association’s chief executive Chris Rodwell also opposed the ban, warning it will ‘push grocery prices higher for Australian families’.
The consumer watchdog’s report found grocery prices rose at more than double the rate of wages between late 2022 and early 2023, sparking concerns over price gouging. But the ACCC’s final report failed to directly accuse supermarkets of gouging customers, and the retailers have consistently denied the allegations. As the battle over grocery prices heats up, one thing is certain – Australian shoppers will be watching closely to see if the new regulations really do deliver a fairer deal.