The Albanese Government is taking action to fight shrinkflation in our supermarkets and retail sector by strengthening the Unit Pricing Code to make it easier for Australians to make accurate and timely price comparisons.
The Government will also introduce substantial penalties for supermarkets who do the wrong thing and breach the Unit Pricing Code.
The practice of 'shrinkflation' is becoming increasingly common, where the size of a product is reduced, but the price at the supermarket is the same or even increases, taking advantage of Australians doing their groceries.
Unit pricing helps consumers spot good value for money by being able to see the price of products by their volume, weight or per unit - so they aren't tricked by unchanged packaging hiding less product.
These changes are about making sure shoppers are able to access the best deals at the supermarket, both in store and online - and that they're not the victims of inflation by stealth in their everyday products.
The ACCC Interim Supermarket Inquiry Report, released by the Albanese Government last week, found that almost 90% of consumers always or often use unit pricing when deciding what products to buy.
Through the course of the Inquiry, stakeholders raised concerns about how supermarkets apply unit pricing in Australia - including the size and font of print on in-store labels and the inconsistent units of measure being used to price the same products.
To make sure unit pricing is helping Australian shoppers, the Government will be strengthening the Unit Pricing Code to ensure supermarkets are providing the information Australians need to find the best deal.
The Government will consult on improvements to the Code like:
- Improving readability and visibility of unit pricing in stores;
- Addressing inconsistent use of units of measure across supermarkets;
- Whether to expand the scope of retailers covered by the Code;
- More specific prominence and legibility requirements; and
- Improving the use of unit pricing in cross-retailer price comparisons.
To ensure shoppers are able to get the best value for money, we'll fund the ACCC to deliver a consumer awareness campaign showing shoppers how they can find the best deals.
Today's announcements come in addition to a series of actions undertaken by the Albanese Labor Government to get a better deal for Australians at the supermarket:
- Provided the ACCC with a $30 million boost to crack down on market conduct that pushes up cost-of-living pressures for Australians, like misleading and deceptive pricing practices and other unconscionable conduct by supermarkets and retailers.
- Commenced consultation on a new mandatory Food and Grocery Code, adopting all recommendations of Dr. Craig Emerson's review.
- Banned unfair contract terms and increased penalties for breaches of competition and consumer law and delivering progress on the most significant merger reforms in Australia in almost 50 years.
- Commenced work with the states and territories to revitalise National Competition Policy, including on planning and zoning for supermarkets
- Supported CHOICE to release its second Albanese Government-funded price monitoring report, giving Australians accurate data on where to get the cheapest groceries.
Prime Minister Anthony Albanese said the Government is cracking down on supermarkets to help Australians get a fair deal at the checkout.
"Tackling 'shrinkflation' through stronger unit pricing and new penalties is part of our plan to get a better deal for Australians," the Prime Minister said.
"We are also making changes to make sure the ACCC is a tough cop on the beat, while also encouraging more competition and making sure there are significant consequences for supermarkets who do the wrong thing."
Assistant Treasurer Stephen Jones said the Albanese Government knows Australians are doing it tough and won't accept businesses taking advantage of consumers.
"Misleading practices around pricing are illegal and completely inappropriate. The bar needs to be raised significantly," the Assistant Treasurer said.
"Australian consumers deserve fair prices, not dodgy discounts. That's why we've empowered the ACCC to act in the interests of consumers and crackdown on dodgy practices immediately."
Assistant Minister for Competition Andrew Leigh said the Governments wants a supermarket industry that is fair for families, and fair for farmers.
"Competition is the consumer's friend. We're working to hold supermarkets to account by providing consumers with the information they need to make the best decisions," Assistant Minister Leigh said.
"The Albanese Government is committed to helping Australian families save time and money at the checkout."
