In the wake of a 30-year inflation high of 7.8 per cent in December 2022, Australians have been grappling with the skyrocketing cost of living.

The most noticeable impact has been on grocery prices, with supermarket giants Coles and Woolworths under scrutiny for what some customers believe to be more than just inflation at play.

It could be said that Aussies are victims of price gouging, a practice where prices are raised beyond what is considered reasonable or fair.

Recent reports allege that these supermarket behemoths use sly tactics, such as members-only pricing at Woolworths and body cameras at Coles, which have raised eyebrows.

This, coupled with Coles' and Woolworths' record-breaking profits, has led to a parliamentary inquiry and investigations by the Australian Competition & Consumer Commission (ACCC).

The issue of price gouging at supermarkets has led to a parliamentary inquiry and investigations by the ACCC. Image source: Freepik.

But in Australia, price gouging is not technically illegal.

The ACCC defined it as a situation where businesses respond to a sudden rise in demand or lack of supply with very large price increases.

'While it’s often seen as unfair, prices or price increases that people may think are too high are not illegal on their own. However, it’s illegal for businesses to make false or misleading claims about prices, including the reason for price increases,' the ACCC said.

In July 2023, a Woolworths spokesperson defended the company's profit margins in front of a parliamentary committee, claiming they were low.

However, this statement referred to the company as a whole, which also includes BIG W.

When focusing solely on the supermarket component of Woolworths and Coles, it can be said that profits have soared during the cost-of-living crisis.

The numbers also show a discrepancy on the supply end.

Despite the rising price of their products on the consumer end, farmers have reportedly been losing money.

Trevor Cross, a farmer in Bundaberg, called for an inquiry saying, 'There should be an inquiry [into] why food is so dear, when actually we dump more than we’re selling at the moment.'

Some farmers are also threatening to close up shop and stop supplying supermarkets altogether. You can read more about this here.

The Government's Response to Price-Gouging Allegations

In December 2023, the Greens initiated a Senate inquiry into the major supermarkets, focusing on food prices, pricing strategies, and profit inflation during economic hardship.

Ahead of the inquiry, the Albanese government appointed Dr Craig Emerson to lead the 2023-24 review of the Food and Grocery Code of Conduct.

'If the price for meat and fruit and vegetables is going down at the farm gate then families should be seeing cheaper prices on supermarket shelves too. Supermarkets have a duty to make sure they’re providing affordable options for all Australians, especially when they’re making savings on their own costs,' Prime Minister Anthony Albanese said.

The ACCC is also investigating complaints of deceptive discounts, where retailers increase the price of an item shortly before applying a discount, thus exaggerating the savings the consumer is making.

'For some time now, we have been closely considering the reports received from consumers alleging false or misleading “was/now” or other pricing “specials” advertising by supermarkets, and whether they may raise concerns under the [Australian consumer law],' an ACCC spokesperson said in a statement.

'[The ACCC] will not hesitate to take action against large suppliers who are misleading customers about prices.'

The supermarkets have refuted any involvement in practices of price-gouging.

The ACCC has limited powers to act against price gouging, but the Prime Minister has expressed support for the organisation, stating that his government is open to granting them more powers if requested.

One action that could be taken would be to enforce the Food and Grocery Code of Conduct, which is currently voluntary.

The supermarkets reportedly have the option to reduce their prices prior to the completion of the review.

Key Takeaways

• Inflation has led to a significant increase in grocery prices, which has also raised concerns among consumers about possible price gouging by supermarket chains like Coles and Woolworths.
• The Australian Competition & Consumer Commission (ACCC) is investigating claims of deceptive discount practices and price gouging, though the latter is not technically illegal in Australia without deceit or collusion.
• The Australian government and the ACCC are taking steps to ensure fair pricing, with an inquiry into food pricing and supermarket practices and a review of the Food and Grocery Code of Conduct.
• Although supermarkets denied engaging in price gouging behaviours, the Prime Minister has expressed support for giving the ACCC more power to act against such practices, suggesting the possibility of enforcing a once-voluntary Food and Grocery Code of Conduct.

What are your thoughts on the rising grocery prices? Have you noticed any deceptive pricing tactics at your local supermarket? Share your thoughts and experiences in the comments below.

 

[Aussie all the Way]

Woolies and Coles bring their prices DOWN

 

[Annna]

Have any of you out there noticed that Woolworths have lately had 1/2 price specials in catalogues for in-store purchasers that don't exist on the shelves in-store?

I've had this experience with food and cleaning items over the last 2 months.

When I've asked where I could get these items, the response has been: 'out of stock'.

In one case, I went to one store on the first day of the special, a Wednesday then again on Thursday and Friday - 'no stock'.

I then went to another Woolworths store on Saturday and Monday - : no stock'. The 1/2 price special ends on Tuesday.

What I've experienced amounts to the store advertising items the store either has not received, or if received, has not placed on shelves.

This brings customers in to Woolworths stores where they don't benefit from the particular special they want to save some money on and end up buying other things as not many shoppers leave a store empty handed.

Is this a tactic?

 

[Anthony Evans]

In the wake of a 30-year inflation high of 7.8 per cent in December 2022, Australians have been grappling with the skyrocketing cost of living.

The most noticeable impact has been on grocery prices, with supermarket giants Coles and Woolworths under scrutiny for what some customers believe to be more than just inflation at play.

It could be said that Aussies are victims of price gouging, a practice where prices are raised beyond what is considered reasonable or fair.

Recent reports allege that these supermarket behemoths use sly tactics, such as members-only pricing at Woolworths and body cameras at Coles, which have raised eyebrows.

This, coupled with Coles' and Woolworths' record-breaking profits, has led to a parliamentary inquiry and investigations by the Australian Competition & Consumer Commission (ACCC).

View attachment 39660

The issue of price gouging at supermarkets has led to a parliamentary inquiry and investigations by the ACCC. Image source: Freepik.

But in Australia, price gouging is not technically illegal.

The ACCC defined it as a situation where businesses respond to a sudden rise in demand or lack of supply with very large price increases.

'While it’s often seen as unfair, prices or price increases that people may think are too high are not illegal on their own. However, it’s illegal for businesses to make false or misleading claims about prices, including the reason for price increases,' the ACCC said.

In July 2023, a Woolworths spokesperson defended the company's profit margins in front of a parliamentary committee, claiming they were low.

However, this statement referred to the company as a whole, which also includes BIG W.

When focusing solely on the supermarket component of Woolworths and Coles, it can be said that profits have soared during the cost-of-living crisis.

The numbers also show a discrepancy on the supply end.

Despite the rising price of their products on the consumer end, farmers have reportedly been losing money.

Trevor Cross, a farmer in Bundaberg, called for an inquiry saying, 'There should be an inquiry [into] why food is so dear, when actually we dump more than we’re selling at the moment.'

Some farmers are also threatening to close up shop and stop supplying supermarkets altogether. You can read more about this here.

The Government's Response to Price-Gouging Allegations

In December 2023, the Greens initiated a Senate inquiry into the major supermarkets, focusing on food prices, pricing strategies, and profit inflation during economic hardship.

Ahead of the inquiry, the Albanese government appointed Dr Craig Emerson to lead the 2023-24 review of the Food and Grocery Code of Conduct.

'If the price for meat and fruit and vegetables is going down at the farm gate then families should be seeing cheaper prices on supermarket shelves too. Supermarkets have a duty to make sure they’re providing affordable options for all Australians, especially when they’re making savings on their own costs,' Prime Minister Anthony Albanese said.

The ACCC is also investigating complaints of deceptive discounts, where retailers increase the price of an item shortly before applying a discount, thus exaggerating the savings the consumer is making.

'For some time now, we have been closely considering the reports received from consumers alleging false or misleading “was/now” or other pricing “specials” advertising by supermarkets, and whether they may raise concerns under the [Australian consumer law],' an ACCC spokesperson said in a statement.

'[The ACCC] will not hesitate to take action against large suppliers who are misleading customers about prices.'

The supermarkets have refuted any involvement in practices of price-gouging.

The ACCC has limited powers to act against price gouging, but the Prime Minister has expressed support for the organisation, stating that his government is open to granting them more powers if requested.

One action that could be taken would be to enforce the Food and Grocery Code of Conduct, which is currently voluntary.

The supermarkets reportedly have the option to reduce their prices prior to the completion of the review.

Key Takeaways

• Inflation has led to a significant increase in grocery prices, which has also raised concerns among consumers about possible price gouging by supermarket chains like Coles and Woolworths.
• The Australian Competition & Consumer Commission (ACCC) is investigating claims of deceptive discount practices and price gouging, though the latter is not technically illegal in Australia without deceit or collusion.
• The Australian government and the ACCC are taking steps to ensure fair pricing, with an inquiry into food pricing and supermarket practices and a review of the Food and Grocery Code of Conduct.
• Although supermarkets denied engaging in price gouging behaviours, the Prime Minister has expressed support for giving the ACCC more power to act against such practices, suggesting the possibility of enforcing a once-voluntary Food and Grocery Code of Conduct.

What are your thoughts on the rising grocery prices? Have you noticed any deceptive pricing tactics at your local supermarket? Share your thoughts and experiences in the comments below.

While we constantly get on about Supermarkets and quite rightly so. Ther are many other things effecting the cost of living that in my humble opinion the various governments should be questioning i.e. insurance my house insurance up $200 this year one year it was the same for my car and other insured items. (I am a pensioner) The state gov charges such as the cost of a driving license and any state charges. Utility prices gas, electric and water We all know how much these have risen, then we council rates and rents all of the above continue to grow at an alarming rate its not only food that is putting pressure on peoples ability to pay these are also a big driver of inflation so the gov should also have these in their inquiry have they I doubt it very much.

 

[LeahI]

Woolies and Coles - prices, specials, profits and ' reasons'- just don't pass the pub test.

 

[Leenie]

While we constantly get on about Supermarkets and quite rightly so. Ther are many other things effecting the cost of living that in my humble opinion the various governments should be questioning i.e. insurance my house insurance up $200 this year one year it was the same for my car and other insured items. (I am a pensioner) The state gov charges such as the cost of a driving license and any state charges. Utility prices gas, electric and water We all know how much these have risen, then we council rates and rents all of the above continue to grow at an alarming rate its not only food that is putting pressure on peoples ability to pay these are also a big driver of inflation so the gov should also have these in their inquiry have they I doubt it very much.

So very true , my home insurance went up over $300 live in a flood free zone, car ins over$200 , how is anyone able to live with cost of everything going sky high ,hate to think what Health ins is going to be with the increase council rates another cost 1 toilet now costs $900 ,water rates another never ending cost. Something has to give these charges cannot continue ., or everyone will be living in tents.

 

[Rob44]

How odd it all is. Someone in the RBA mentions the word "inflation" and then prices skyrocket to cause inflation.

Inflation is simple; it is the profit added on to anything when the full cost of supply, including wages but excluding the ridiculous sums paid to CEOs etc, etc has been met.

 

[Tygie]

In the wake of a 30-year inflation high of 7.8 per cent in December 2022, Australians have been grappling with the skyrocketing cost of living.

The most noticeable impact has been on grocery prices, with supermarket giants Coles and Woolworths under scrutiny for what some customers believe to be more than just inflation at play.

It could be said that Aussies are victims of price gouging, a practice where prices are raised beyond what is considered reasonable or fair.

Recent reports allege that these supermarket behemoths use sly tactics, such as members-only pricing at Woolworths and body cameras at Coles, which have raised eyebrows.

This, coupled with Coles' and Woolworths' record-breaking profits, has led to a parliamentary inquiry and investigations by the Australian Competition & Consumer Commission (ACCC).

View attachment 39660

The issue of price gouging at supermarkets has led to a parliamentary inquiry and investigations by the ACCC. Image source: Freepik.

But in Australia, price gouging is not technically illegal.

The ACCC defined it as a situation where businesses respond to a sudden rise in demand or lack of supply with very large price increases.

'While it’s often seen as unfair, prices or price increases that people may think are too high are not illegal on their own. However, it’s illegal for businesses to make false or misleading claims about prices, including the reason for price increases,' the ACCC said.

In July 2023, a Woolworths spokesperson defended the company's profit margins in front of a parliamentary committee, claiming they were low.

However, this statement referred to the company as a whole, which also includes BIG W.

When focusing solely on the supermarket component of Woolworths and Coles, it can be said that profits have soared during the cost-of-living crisis.

The numbers also show a discrepancy on the supply end.

Despite the rising price of their products on the consumer end, farmers have reportedly been losing money.

Trevor Cross, a farmer in Bundaberg, called for an inquiry saying, 'There should be an inquiry [into] why food is so dear, when actually we dump more than we’re selling at the moment.'

Some farmers are also threatening to close up shop and stop supplying supermarkets altogether. You can read more about this here.

The Government's Response to Price-Gouging Allegations

In December 2023, the Greens initiated a Senate inquiry into the major supermarkets, focusing on food prices, pricing strategies, and profit inflation during economic hardship.

Ahead of the inquiry, the Albanese government appointed Dr Craig Emerson to lead the 2023-24 review of the Food and Grocery Code of Conduct.

'If the price for meat and fruit and vegetables is going down at the farm gate then families should be seeing cheaper prices on supermarket shelves too. Supermarkets have a duty to make sure they’re providing affordable options for all Australians, especially when they’re making savings on their own costs,' Prime Minister Anthony Albanese said.

The ACCC is also investigating complaints of deceptive discounts, where retailers increase the price of an item shortly before applying a discount, thus exaggerating the savings the consumer is making.

'For some time now, we have been closely considering the reports received from consumers alleging false or misleading “was/now” or other pricing “specials” advertising by supermarkets, and whether they may raise concerns under the [Australian consumer law],' an ACCC spokesperson said in a statement.

'[The ACCC] will not hesitate to take action against large suppliers who are misleading customers about prices.'

The supermarkets have refuted any involvement in practices of price-gouging.

The ACCC has limited powers to act against price gouging, but the Prime Minister has expressed support for the organisation, stating that his government is open to granting them more powers if requested.

One action that could be taken would be to enforce the Food and Grocery Code of Conduct, which is currently voluntary.

The supermarkets reportedly have the option to reduce their prices prior to the completion of the review.

Key Takeaways

• Inflation has led to a significant increase in grocery prices, which has also raised concerns among consumers about possible price gouging by supermarket chains like Coles and Woolworths.
• The Australian Competition & Consumer Commission (ACCC) is investigating claims of deceptive discount practices and price gouging, though the latter is not technically illegal in Australia without deceit or collusion.
• The Australian government and the ACCC are taking steps to ensure fair pricing, with an inquiry into food pricing and supermarket practices and a review of the Food and Grocery Code of Conduct.
• Although supermarkets denied engaging in price gouging behaviours, the Prime Minister has expressed support for giving the ACCC more power to act against such practices, suggesting the possibility of enforcing a once-voluntary Food and Grocery Code of Conduct.

What are your thoughts on the rising grocery prices? Have you noticed any deceptive pricing tactics at your local supermarket? Share your thoughts and experiences in the comments below.

It's GREED, pure simple GREED.
Long as people pay those prices they will charge them.

 

[Miss Chris]

Have any of you out there noticed that Woolworths have lately had 1/2 price specials in catalogues for in-store purchasers that don't exist on the shelves in-store?

I've had this experience with food and cleaning items over the last 2 months.

When I've asked where I could get these items, the response has been: 'out of stock'.

In one case, I went to one store on the first day of the special, a Wednesday then again on Thursday and Friday - 'no stock'.

I then went to another Woolworths store on Saturday and Monday - : no stock'. The 1/2 price special ends on Tuesday.

What I've experienced amounts to the store advertising items the store either has not received, or if received, has not placed on shelves.

This brings customers in to Woolworths stores where they don't benefit from the particular special they want to save some money on and end up buying other things as not many shoppers leave a store empty handed.

Is this a tactic?

I would not put it past them at all…..

 

[Miss Chris]

So very true , my home insurance went up over $300 live in a flood free zone, car ins over$200 , how is anyone able to live with cost of everything going sky high ,hate to think what Health ins is going to be with the increase council rates another cost 1 toilet now costs $900 ,water rates another never ending cost. Something has to give these charges cannot continue ., or everyone will be living in tents.

It’s dire isn’t it…..everyone is struggling in some way except of course those who have no need to budget, and however much we might complain, however much the government knows how hard life currently is for the masses, they just don’t seem to care enough, after all, they are not affected, or don’t seem to be bothered in any way…..they’re just looking for ways for Peter to pay Paul, without their lifestyle or very high income (which are paid by us so that they will look out for our best interests!!)and regular pay rises being affected. The kicker is that we can’t do a thing about it, our hands are tied with government shackles whilst they reign supreme, in my opinion…..

 

[Annna]

Have any of you out there noticed that Woolworths have lately had 1/2 price specials in catalogues for in-store purchasers that don't exist on the shelves in-store?

I've had this experience with food and cleaning items over the last 2 months.

When I've asked where I could get these items, the response has been: 'out of stock'.

In one case, I went to one store on the first day of the special, a Wednesday then again on Thursday and Friday - 'no stock'.

I then went to another Woolworths store on Saturday and Monday - : no stock'. The 1/2 price special ends on Tuesday.

What I've experienced amounts to the store advertising items the store either has not received, or if received, has not placed on shelves.

This brings customers in to Woolworths stores where they don't benefit from the particular special they want to save some money on and end up buying other things as not many shoppers leave a store empty handed.

Is this a tactic?

This is what I've experienced.