Aussies say enough! Government finally targets sneaky supermarket tricks

Wayne Morris couldn’t believe his eyes. He stared at his favourite chocolate bar in the supermarket aisle, convinced it had somehow shrunk. The price, however, had stayed exactly the same.

Wayne wasn’t imagining things. Like millions of Australians, he had fallen victim to shrinkflation—the subtle tactic where product sizes decrease while prices remain steady or even rise. Recent research revealed that 79 per cent of Australians had noticed shrinkflation, one of the highest awareness rates worldwide.

Easter favourites, breakfast cereals, chips and cleaning products were among the latest groceries to fall victim to shrinkflation, according to consumer watchdog CHOICE. Their investigation revealed examples that made shoppers double-check their weekly shop.

Jif’s Power and Shine Bathroom cleaner had soared in price per 100ml by over 122 per cent—rising from $2.50 for 700ml in May 2022 to $4 for 500ml in 2024. This was more than shrinkflation; it was daylight robbery disguised as spring cleaning.

Woolworths’ Max Charge cereal had shrunk from 560g packs to 495g in September last year, with the price remaining $4.50—equating to almost 14 per cent more per 100g. Even Easter treats weren’t spared, with Community Co’s hot cross buns dropping from 480g to 450g while the price rose from $4.00 to $4.50.

While Australians wrestled with shrinking products, other countries took a tougher stance. France required retailers to flag products reduced in size without a price cut after food inflation hit 16 per cent last year. In South Korea, food makers faced fines up to $7,300 for failing to notify consumers of size changes. The United States was considering legislative bills to tackle the issue.

UNSW Business School experts said shrinkflation had a strong psychological effect on consumers, with high inflation making people even more sensitive to unfairness around cost and quality. Queensland University of Technology’s Professor Gary Mortimer explained: 'I think ultimately it comes down to loss perception. We don't want to pay more for the same, but we're willing to pay the same for a little bit less.'

Professor Nitika Garg from UNSW highlighted the supermarket duopoly as a problem for Australian families: 'Imagine a young family with young kids and without huge amounts of discretionary income. How much time do they have to sit on websites and apps and price-compare? It is a heavy burden to place on individual consumers.'

The federal government began taking action to make size changes clearer for shoppers. Assistant Minister for Treasury Andrew Leigh said: 'If a chocolate bar loses two squares but keeps the same price, that's not magic—it's shrinkflation. We want feedback on what steps we can take next to crack down on diminishing sizes.'

Proposed measures included forcing supermarkets to publish notifications when package sizes changed, penalties for unclear unit pricing, and stronger ACCC enforcement powers. Coles and Woolworths faced scrutiny over alleged price gouging, fake discounts, and other unfair practices, with Coles reporting $1.1 billion in profits and Woolworths $108 million.

Shoppers could protect themselves against shrinkflation by checking unit prices per 100g or 100ml, comparing sizes of regular purchases, considering generic brands, buying in bulk when real specials appeared, keeping receipts, and reporting dodgy unit pricing to consumer groups.

The ACCC received over $30 million in government funding to investigate misleading supermarket practices, while Coles and Woolworths would face a joint trial over alleged false or misleading discount claims.

Public consultation on the government's shrinkflation crackdown remained open until 19 September, giving Australians a chance to share experiences and suggestions.

Like Wayne Morris, Australians didn’t have to accept getting less for more. Awareness and the right strategies could help navigate the shrinking supermarket maze while keeping money in their pockets.

Have you noticed your favourite products shrinking while prices stayed the same or rose?