Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), accused the country’s two largest supermarket chains, Coles and Woolworths, of misleading the public over permanent price cuts on hundreds of grocery items.
However, the ACCC alleged Coles and Woolworths jacked up prices for some periods of time but ultimately returned them to virtually the same price as-and in some cases higher than-the original charge-or cut them to unconscionable levels,” ACCC concluded. Coles said that it will contest the allegations with all possible means, whereas Woolworths was still analyzing the allegations.
The ACCC conducted its investigation following consumer complaints and further follow-up from itself, finding that Woolworths misled a total of 266 products over a period of 20 months. Similarly, it also found that Coles misled its customers on 245 other products over a period of 15 months. Included are various grocery items such as pet food, Band-Aid plasters, mouthwash, Arnott’s Tim Tam biscuits, Bega Cheese, and Kellogg’s cereal, among others.
Government Response and Legislative Measures
The conduct alleged is completely unacceptable. Consumers deserve better than this. Today, at a media conference, Mr Albanese unveiled draft legislation to introduce what will be known as the “code of conduct” that would regulate supermarket practice and consumers’ rights.
Prices, according to ACC Chair Gina Cass-Gottlieb, have to be just right since most consumers use discounted prices to counter the hard edges of grocery shopping, especially when living costs are high.
The ACC is set to stringently penalize the two companies involved and requires the firms to better their food delivery charity programs.
Reactions of Supermarkets
In a defense, Coles said that since its operational costs were continually going up, the company had little choice but to raise the price as it had a better alternative, yet demonstrated that it had worked to offer value for money for customers as it reinstated promotions just as soon as possible after raising price. Woolworths on their side said that they remained committed to discussions with the ACCC over the issue.
Food and Grocery Code of ConductThe Australian government set up a review to address greater scrutiny surrounding supermarket giants about the Food and Grocery Code of Conduct. Recommendations from the review are now proposed, encompassing a stronger, mandatory code undertaken by the ACCC, which seeks to make the market fairer to both parties, the suppliers, and the consumers.
Issues about transparency and fairness that have been long-brewed in Australia’s grocery market relate to the moves the ACCC is undertaking.