The top of the competitors and client regulator nonetheless has “high concerns” in regards to the pricing practices of Australia’s dominant supermarkets even after they had been subjected to litigation and intense public scrutiny.
Gina Cass-Gottlieb, the Australian Competitors and Shopper Fee chair, additionally stated rules might must be bolstered to fight complaints raised by customers and suppliers uncovered to a extremely concentrated sector led by Coles and Woolworths.
The ACCC is because of hand its closing report into the grocery store sector to the federal government by the top of February, after earlier elevating issues that the “oligopolistic” market might restrict incentives to compete vigorously.
It’s individually suing Coles and Woolworths over allegations they misled customers by providing “illusory” reductions on tons of of widespread grocery store merchandise.
The supermarkets are defending the authorized claims and have constantly denied allegations they abuse their market energy by price-gouging customers and driving down costs on agricultural suppliers.
“We continue to be very concerned about it,” stated Cass-Gottlieb, in response to questions on whether or not the supermarkets had improved their practices.
“The best answer on an interim basis today is we continue to have high concerns and we will give a very extensive report to the government quite soon.
“In addition there is a question whether the current regulations go far enough.”
Shrinking merchandise
Guardian Australia not too long ago detailed an instance of Woolworths promoting a considerably smaller stick of Brut deodorant for greater than double the unit value of the outdated product, months after related practices had been criticised on the ACCC’s public hearings.
Bryce New of New South Wales provided one other instance of “shrinkflation”, whereby the price of a loaf of bread, per gram, had gone up markedly after Coles lowered its dimension.
New, who stated he virtually completely shopped at Coles, stated the grocery store stopped promoting its 680g “traditional white” gluten-free loaves, priced at $7, in December.
He stated that bread had been essentially the most inexpensive gluten-free possibility, and he was “deeply saddened by the loss to the gluten-free and coeliac communities”.
New stated Coles relaunched the bread in 440g loaves, for $6.25, which meant the value per gram had gone up by 38%.
A Coles spokesperson stated the brand new loaves had been lighter as a consequence of “innovative techniques” and a “new formulation” and that they had been “of a superior quality for our customers”.
“The new formulation is less dense which more closely mimics dough formulations similar to gluten-based bread,” the spokesperson stated.
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Woolworths stated it had made related adjustments to its own-brand gluten-free bread. A spokesperson stated the corporate had switched suppliers and was “using a new recipe to offer a lighter, less dense bread which is closer to the consistency of traditional wheat-based breads”.
The adjustments had been primarily based on suggestions from clients, they stated.
Residing prices
Cass-Gottlieb’s critique of the supermarkets was made forward of a speech as a consequence of be delivered on Thursday detailing the ACCC’s compliance and enforcement priorities.
The regulator will inform the Committee for Financial Improvement of Australia it would deal with sectors and conduct which have a major affect on value of residing.
“Market concentration is a growing challenge across the Australian economy – in supermarkets and retail, in aviation, and in many of our essential services,” Cass-Gottlieb will say.
Final yr, the federal authorities allotted $30m to the competitors regulator for devoted investigations and enforcement actions within the grocery store and broader retail sector.
The funding was supplied throughout a interval of fast-rising residing prices that particularly affected lower-income earners, given a larger portion of their price range goes to important objects.
The ACCC has welcomed a brand new merger regime that comes into drive at the beginning of 2026 that ought to forestall corporations shopping for up rivals with restricted scrutiny.
From subsequent yr, corporations can be required to inform the regulator of mergers of a sure dimension in a significant revamp of competitors legal guidelines designed to scale back unfair market focus.
