Are supermarket giants tricking you with misleading labels? Find out how!
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As Australians grapple with the ever-increasing cost of living, with grocery bills climbing steadily, it's more important than ever to be a savvy shopper.
However, what if the very tools we rely on to make informed decisions at the supermarket are leading us astray?
Recent findings suggest that promotional labels used by major supermarkets, including Woolworths, Coles, and ALDI, may be causing more confusion than clarity, potentially misleading consumers who are trying to stretch their dollars further.
A study conducted by the consumer advocacy group CHOICE revealed a concerning trend.
Among the more than 1,000 shoppers surveyed, they found that one in four Australians struggle to discern whether promotional price tags at these major supermarkets actually represent a real discount on the usual price.
With a plethora of labels such as 'While Stocks Last', 'Super Savers', 'Down Down', 'Prices Dropped', and 'Member Price', it's no wonder shoppers are left scratching their heads.
Rosie Thomas, Director of Campaigns and Communications at CHOICE, expressed alarm over the findings.
'Our research shows that there is widespread confusion, and the supermarkets are arguably using the various labels to manipulate and impede informed purchasing decisions,' she said.
‘It's very possible that some of the promotional tags crossed the line into being potentially misleading.’
‘This is particularly concerning considering many people are trying to make their grocery shop as affordable as possible in a cost-of-living crisis,’ she added.
Take, for example, a coconut water product at Woolworths that was tagged with 'Price Dropped' and sold for $4.
Despite the implication of a recent price reduction, the product had been sold at that price for nearly five years, having been reduced from $6 back in July 2019.
Woolworths defended its pricing strategy, stating that it ‘typically includes 300-400 seasonally relevant products that remain at a “dropped” price throughout the season’ and some items ‘have stayed at the lower dropped shelf price to provide price certainty’.
‘We think this comes very close to the kind of potentially misleading pricing practice that the ACCC has already called out,’ Ms Thomas stated.
The ACCC made it clear that if an item is offered at a sale or special price for an extended period, advertising it as such may be misleading, as the price has effectively become the new selling price.
This is a crucial point for consumers to understand, as it challenges the notion that a 'special' price is indeed special.
The confusion doesn't end there. The research found that Coles' 'While Stocks Last' label left most consumers uncertain about whether they're getting a genuine discount.
There was divided opinion on a product with that label, with approximately one-third (31 per cent) of respondents indicating it was discounted, another third (36 per cent) believing it wasn't, and the remaining third (33 per cent) unsure.
Coles did not confirm whether the price was discounted; however, they said ‘While Stocks Last’ tags ‘offer customers the chance to buy items which are only available at Coles for a short time, and which are unlikely to be restocked once the products are sold through’.
ALDI's ‘Super Savers’ label also caused confusion among shoppers, with approximately one-third of respondents uncertain if it indicated a discount, as per the research.
As with Coles, ALDI also did not confirm whether the product was at a discounted price, but stated that the ‘Super Savers’ offers across fresh produce, meat, fresh seafood, and bakery provide ‘even better value on our already low-priced products’ and prices ‘do fluctuate as they are more readily susceptible to market conditions, favourable or otherwise’.
The ACCC did not provide comments on specific cases but stated that it ‘is conscious that “was/now” and other pricing “specials” significantly influence consumers’ purchasing decisions’.
‘Under the Australian Consumer Law, businesses must not make false or misleading statements about prices, including about price savings and discounts,’ a spokesperson said.
CHOICE recognised that without contextual information or historical pricing data, it is impossible for the group to independently verify whether these are genuine promotions.
‘It's currently very hard for any consumer or an organisation like CHOICE to track how prices have changed over time for a particular item,’ Ms Thomas said.
‘It is very disappointing, and this is really where the harm from confusing specials manifests.’
‘We'd welcome the government looking at ways to expand transparency in this area, including by potentially empowering the ACCC to collect and publish a database of supermarket prices to enable people to track how prices move over time,’ she continued.
Last week, a Senate inquiry into supermarket pricing threatened Woolworths CEO Brad Banducci with contempt for not answering questions about the supermarket giant's financial returns.
In February, a report by former ACCC chair Allan Fels, commissioned by the ACTU, found that supermarkets were using their market power in ways that increase inflation and harm Australian households.
The ACCC has initiated an inquiry into supermarket pricing practices and the connection between wholesale, including farmgate, and retail prices.
This enables the ACCC to utilise its compulsory information-gathering authority to gather information from the relevant parties involved in the inquiry.
‘We have been considering the reports received from consumers alleged false or misleading “was/now” or other pricing “specials” advertising by supermarkets, and whether they may raise concerns under the ACL,’ a spokesperson said.
‘These assessments are ongoing, so we are unable to comment further.’
CHOICE made a submission to the ACCC, including this research on promotional labels, urging strong enforcement action from the ACCC to ‘send a clear message to the supermarkets that misleading pricing is unacceptable’.
‘We're calling for more prescriptive rules to make it easier for consumers to compare and decide what to buy at the supermarket,’ Ms Thomas stated.
‘And we also strongly support new fairness laws, what's known as an unfair trading practice that would ban unfair practices designed to manipulate consumer choices.’
‘The best thing consumers can do when shopping is always to compare the unit price rather than comparing “specials” tags.’
‘Try not to fall for the coloured tags and look for the best unit price that's available,’ she added.
Have you encountered misleading labels or promotions? How do you ensure you're getting the best value for your money? Join the conversation and let us know your strategies for smart shopping in the comments below!
However, what if the very tools we rely on to make informed decisions at the supermarket are leading us astray?
Recent findings suggest that promotional labels used by major supermarkets, including Woolworths, Coles, and ALDI, may be causing more confusion than clarity, potentially misleading consumers who are trying to stretch their dollars further.
A study conducted by the consumer advocacy group CHOICE revealed a concerning trend.
Among the more than 1,000 shoppers surveyed, they found that one in four Australians struggle to discern whether promotional price tags at these major supermarkets actually represent a real discount on the usual price.
With a plethora of labels such as 'While Stocks Last', 'Super Savers', 'Down Down', 'Prices Dropped', and 'Member Price', it's no wonder shoppers are left scratching their heads.
Woolworths, Coles, and ALDI faced accusations of using promotional labels that could confuse and mislead consumers about genuine discounts. Credits: CHOICE
Rosie Thomas, Director of Campaigns and Communications at CHOICE, expressed alarm over the findings.
'Our research shows that there is widespread confusion, and the supermarkets are arguably using the various labels to manipulate and impede informed purchasing decisions,' she said.
‘It's very possible that some of the promotional tags crossed the line into being potentially misleading.’
‘This is particularly concerning considering many people are trying to make their grocery shop as affordable as possible in a cost-of-living crisis,’ she added.
Take, for example, a coconut water product at Woolworths that was tagged with 'Price Dropped' and sold for $4.
Despite the implication of a recent price reduction, the product had been sold at that price for nearly five years, having been reduced from $6 back in July 2019.
Woolworths defended its pricing strategy, stating that it ‘typically includes 300-400 seasonally relevant products that remain at a “dropped” price throughout the season’ and some items ‘have stayed at the lower dropped shelf price to provide price certainty’.
‘We think this comes very close to the kind of potentially misleading pricing practice that the ACCC has already called out,’ Ms Thomas stated.
The ACCC made it clear that if an item is offered at a sale or special price for an extended period, advertising it as such may be misleading, as the price has effectively become the new selling price.
This is a crucial point for consumers to understand, as it challenges the notion that a 'special' price is indeed special.
The confusion doesn't end there. The research found that Coles' 'While Stocks Last' label left most consumers uncertain about whether they're getting a genuine discount.
There was divided opinion on a product with that label, with approximately one-third (31 per cent) of respondents indicating it was discounted, another third (36 per cent) believing it wasn't, and the remaining third (33 per cent) unsure.
Coles did not confirm whether the price was discounted; however, they said ‘While Stocks Last’ tags ‘offer customers the chance to buy items which are only available at Coles for a short time, and which are unlikely to be restocked once the products are sold through’.
ALDI's ‘Super Savers’ label also caused confusion among shoppers, with approximately one-third of respondents uncertain if it indicated a discount, as per the research.
As with Coles, ALDI also did not confirm whether the product was at a discounted price, but stated that the ‘Super Savers’ offers across fresh produce, meat, fresh seafood, and bakery provide ‘even better value on our already low-priced products’ and prices ‘do fluctuate as they are more readily susceptible to market conditions, favourable or otherwise’.
The ACCC did not provide comments on specific cases but stated that it ‘is conscious that “was/now” and other pricing “specials” significantly influence consumers’ purchasing decisions’.
‘Under the Australian Consumer Law, businesses must not make false or misleading statements about prices, including about price savings and discounts,’ a spokesperson said.
CHOICE recognised that without contextual information or historical pricing data, it is impossible for the group to independently verify whether these are genuine promotions.
‘It's currently very hard for any consumer or an organisation like CHOICE to track how prices have changed over time for a particular item,’ Ms Thomas said.
‘It is very disappointing, and this is really where the harm from confusing specials manifests.’
‘We'd welcome the government looking at ways to expand transparency in this area, including by potentially empowering the ACCC to collect and publish a database of supermarket prices to enable people to track how prices move over time,’ she continued.
Last week, a Senate inquiry into supermarket pricing threatened Woolworths CEO Brad Banducci with contempt for not answering questions about the supermarket giant's financial returns.
In February, a report by former ACCC chair Allan Fels, commissioned by the ACTU, found that supermarkets were using their market power in ways that increase inflation and harm Australian households.
The ACCC has initiated an inquiry into supermarket pricing practices and the connection between wholesale, including farmgate, and retail prices.
This enables the ACCC to utilise its compulsory information-gathering authority to gather information from the relevant parties involved in the inquiry.
‘We have been considering the reports received from consumers alleged false or misleading “was/now” or other pricing “specials” advertising by supermarkets, and whether they may raise concerns under the ACL,’ a spokesperson said.
‘These assessments are ongoing, so we are unable to comment further.’
CHOICE made a submission to the ACCC, including this research on promotional labels, urging strong enforcement action from the ACCC to ‘send a clear message to the supermarkets that misleading pricing is unacceptable’.
‘We're calling for more prescriptive rules to make it easier for consumers to compare and decide what to buy at the supermarket,’ Ms Thomas stated.
‘And we also strongly support new fairness laws, what's known as an unfair trading practice that would ban unfair practices designed to manipulate consumer choices.’
‘The best thing consumers can do when shopping is always to compare the unit price rather than comparing “specials” tags.’
‘Try not to fall for the coloured tags and look for the best unit price that's available,’ she added.
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