Coles caught red-handed over secretly raising ‘locked’ prices: ‘Simply unacceptable’
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Nobody likes it when large corporations try to take advantage of customers, particularly when wallets are already stretched so thinly.
In a recent report that has left many Australian consumers feeling deceived, supermarket giant Coles has been caught increasing the prices of several products that were supposedly 'price-locked' for a certain period.
This breach of trust, brought to light by consumer advocacy group CHOICE, has led to an apology from Coles and a commitment to refund affected customers.
CHOICE lodged a complaint with the Australian Competition and Consumer Commission (ACCC) after discovering that Coles had reneged on its promise to keep certain product prices stable.
This comes when many Australians are grappling with a cost of living crisis, making the supermarket's actions all the more egregious.
Coles’s LOCKED price program was introduced in June this year, with an aim to provide additional price certainty for its customers, ensuring they won’t be ambushed by unexpected expenses during their weekly shopping.
However, this aim seemed to take the wrong turn.
Andrew Kelly, Deputy Director of Campaigns at CHOICE, expressed his disappointment at Coles' conduct.
'A retailer as big as Coles failing to keep its pricing promises is simply unacceptable, particularly during a cost of living crisis where so many people are already worried about the price of food and groceries,' he said.
Kelly further pointed out that this isn't the first time Coles has been in the spotlight for dubious practices.
'This kind of behaviour from Coles is exactly why we gave them a Shonky Award earlier this year,’ he added.
‘Coles has been touting how they’re supposedly helping with the cost of living crisis, all while banking huge profits and not following through on pricing promises made to their customers.'
The Shonky Awards is an award given by CHOICE that aims to name (and shame) the companies that have disappointed consumers or not provided value for money.
This year’s Shonky Awards were given to Coles and Woolworths, as these supermarkets received billions of profits while shoppers have been complaining that they aren’t doing anything to keep food costs low. You can read more about it here.
In response to the backlash, a Coles spokesperson issued an apology for the mistake and assured customers that refunds were being processed for those who used their Flybuys card or purchased online.
For customers who purchased items in-store, they were advised to visit the service desk and present a receipt to process the refund.
The controversy has also led to Coles CEO Leah Weckert confirming her attendance at the Senate inquiry into supermarket prices next year.
'We have worked collaboratively with previous inquiries and are ready to work with the committee and engage in an informed discussion on the factors that influence supermarket pricing,' she said.
In a previous story, the Greens Economic Justice called for a senate inquiry into pricing strategies employed by Coles and Woolworths.
The inquiry is expected to scrutinise whether customers are subjected to 'price gouging' during economic hardship, own brand products to market concentration, corporate profit hikes and the extraction of cost-savings from employees and consumers through automation.
The initial hearings for the inquiry will take place in early 2024. Read more information about the Senate inquiry here.
What are your thoughts on this issue, members? Have you experienced similar price hikes at your local supermarket? Share them with us in the comments below.
In a recent report that has left many Australian consumers feeling deceived, supermarket giant Coles has been caught increasing the prices of several products that were supposedly 'price-locked' for a certain period.
This breach of trust, brought to light by consumer advocacy group CHOICE, has led to an apology from Coles and a commitment to refund affected customers.
CHOICE lodged a complaint with the Australian Competition and Consumer Commission (ACCC) after discovering that Coles had reneged on its promise to keep certain product prices stable.
Coles was caught increasing its ‘price-locked’ products. Credit: CHOICE
This comes when many Australians are grappling with a cost of living crisis, making the supermarket's actions all the more egregious.
Coles’s LOCKED price program was introduced in June this year, with an aim to provide additional price certainty for its customers, ensuring they won’t be ambushed by unexpected expenses during their weekly shopping.
However, this aim seemed to take the wrong turn.
Andrew Kelly, Deputy Director of Campaigns at CHOICE, expressed his disappointment at Coles' conduct.
'A retailer as big as Coles failing to keep its pricing promises is simply unacceptable, particularly during a cost of living crisis where so many people are already worried about the price of food and groceries,' he said.
Kelly further pointed out that this isn't the first time Coles has been in the spotlight for dubious practices.
'This kind of behaviour from Coles is exactly why we gave them a Shonky Award earlier this year,’ he added.
‘Coles has been touting how they’re supposedly helping with the cost of living crisis, all while banking huge profits and not following through on pricing promises made to their customers.'
The Shonky Awards is an award given by CHOICE that aims to name (and shame) the companies that have disappointed consumers or not provided value for money.
This year’s Shonky Awards were given to Coles and Woolworths, as these supermarkets received billions of profits while shoppers have been complaining that they aren’t doing anything to keep food costs low. You can read more about it here.
In response to the backlash, a Coles spokesperson issued an apology for the mistake and assured customers that refunds were being processed for those who used their Flybuys card or purchased online.
For customers who purchased items in-store, they were advised to visit the service desk and present a receipt to process the refund.
The controversy has also led to Coles CEO Leah Weckert confirming her attendance at the Senate inquiry into supermarket prices next year.
'We have worked collaboratively with previous inquiries and are ready to work with the committee and engage in an informed discussion on the factors that influence supermarket pricing,' she said.
In a previous story, the Greens Economic Justice called for a senate inquiry into pricing strategies employed by Coles and Woolworths.
The inquiry is expected to scrutinise whether customers are subjected to 'price gouging' during economic hardship, own brand products to market concentration, corporate profit hikes and the extraction of cost-savings from employees and consumers through automation.
The initial hearings for the inquiry will take place in early 2024. Read more information about the Senate inquiry here.
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