The Albanese Labor Government has announced funding of $30 million (US$21 million) for the Australian Competition & Consumer Commission (ACCC) to conduct an extensive investigation and enforcement in the supermarket and retail sectors.
This follows the ACCC’s decision to take legal action against retail giants Coles and Woolworths for allegedly misleading customers with their discount pricing on hundreds of everyday products.
Prime Minister Anthony Albanese reacted to the development, saying: “We don’t want to see ordinary Australians, families, and pensioners being taken for a ride by the supermarkets. We’re taking steps to make sure they get a fair go at the checkout.”
In addition to the ACCC’s crackdown, Treasurer Jim Chalmers has announced a push for reform in planning and zoning regulations. Working with state and territory governments through the Council on Federal Financial Relations, the aim is to lower barriers to entry for new businesses by opening up more sites for supermarkets.
The current regulatory frameworks, including land use restrictions and zoning laws, have been criticised for inhibiting competition and allowing land banking, which drives up prices for consumers.
“We’re taking decisive action to help Australians get fairer prices at the supermarket checkout, in stores and online,” said Chalmers.
He further added that more funding for the ACCC will help make pricing fairer, boost competition, and ensure there are significant consequences for supermarkets that do the wrong thing.
On Sept. 27, the ACCC labelled Woolworths and Coles as key players in an “oligopoly.” In its 265-page interim report, the supermarket giants were found to have lost consumer trust, with nearly half of the respondents complaining about prices, up from 17 percent in 2008.
Key concerns include misleading pricing practices, loyalty programme penalties, and limited negotiating power for suppliers.
The report highlighted that it took Aldi 20 years to carve out a 9 percent share of the Australian market, underscoring the challenges of entering and expanding in the sector.
It argued that planning and zoning laws slow a supermarket retailer’s ability to develop new stores by creating additional costs or adding significant delays.
Meanwhile, the government announced several other initiatives, including the release of a new mandatory Food and Grocery Code, which subjects major supermarkets to significant penalties for serious breaches.
Consumer advocacy group CHOICE has also published a price monitoring report funded by the government, providing data on where Australians can find the cheapest groceries.
In another key step, the Commission will summon supermarket executives in November for a public inquiry.
