Meg Elkins’ Post

Australia’s biggest supermarkets could face fines of at least $10 million for breaking new rules aimed at stopping unfair pricing practices. The proposed laws, set to be introduced in Parliament, target how supermarkets deal with suppliers and advertise prices to shoppers. The fines could be even higher, based on either three times the amount gained from the misconduct or 10% of the company’s turnover in the previous year. These penalties are part of a new mandatory code of conduct that will replace the current voluntary one from April 2024. It will apply to grocers like Coles, Woolworths, Aldi, and Metcash, earning over $5 billion annually in Australia. The government is acting after allegations that Coles and Woolworths raised prices by at least 15% before offering so-called “discounts” that were still higher than the original prices. Both companies deny the claims. Prime Minister Anthony Albanese has criticised these actions, saying Australians deserve fair treatment at the checkout. The Treasurer, Jim Chalmers, has highlighted the impact of rising living costs and says the new code is designed to protect families and farmers. The ACCC will also have more power to issue infringement notices for breaches, ensuring stricter enforcement. This highlights the need for transparency in pricing. Fair and honest practices are not just ethical; they also build long-term customer loyalty. Focusing on value-based pricing rather than short-term gains is a better path to success, ensuring fairness for shoppers and suppliers alike. #pricingnews #taylorwellspricing #supermarketpricing Source: https://lnkd.in/gcRBNtrm

Australia’s biggest supermarkets could face fines of at least $10 million for breaking new rules aimed at stopping unfair pricing practices. The proposed laws, set to be introduced in Parliament, target how supermarkets deal with suppliers and advertise prices to shoppers. The fines could be even higher, based on either three times the amount gained from the misconduct or 10% of the company’s turnover in the previous year. These penalties are part of a new mandatory code of conduct that will replace the current voluntary one from April 2024. It will apply to grocers like Coles, Woolworths, Aldi, and Metcash, earning over $5 billion annually in Australia. The government is acting after allegations that Coles and Woolworths raised prices by at least 15% before offering so-called “discounts” that were still higher than the original prices. Both companies deny the claims. Prime Minister Anthony Albanese has criticised these actions, saying Australians deserve fair treatment at the checkout. The Treasurer, Jim Chalmers, has highlighted the impact of rising living costs and says the new code is designed to protect families and farmers. The ACCC will also have more power to issue infringement notices for breaches, ensuring stricter enforcement. This highlights the need for transparency in pricing. Fair and honest practices are not just ethical; they also build long-term customer loyalty. Focusing on value-based pricing rather than short-term gains is a better path to success, ensuring fairness for shoppers and suppliers alike.

Federal Government (on same day ACCC moves to sue big two supermarkets) introduces a draft of the revised and set to be mandatory Grocery Code of Conduct. " The amendments will introduce higher maximum penalties for breaches and higher infringement notice penalties for alleged breaches of the Food and Grocery Code and other industry codes. Legislation will be introduced into the parliament later this year." #Supermarkets #FederalGovernment #RevisedGroceryCodeofConduct #MANDATORY #highbreachpenalties

The Commerce Commission has announced "it will be filing criminal charges against Woolworths NZ, Pak’nSave Silverdale, and Pak’nSave Mill Street for what the Commission alleges was inaccurate pricing and misleading specials that may have breached the Fair Trading Act." The Commission also has ongoing investigations with other supermarket operators. Commission Deputy Chair Anne Callinan commented "The charges we’re filing against major supermarket brands are to remind all supermarket operators that we expect them to fix ongoing pricing accuracy issues and implement better processes to prevent issues like these in the future” One of the Commission's recently announced specific enforcement and compliance priorities for 2024/25 is Breaches in the Grocery Sector, with the Commission commenting that "Groceries are a critical purchase for all New Zealanders. Consumers should be able to rely on supermarket prices and price promotions being accurate." We therefore expect the Commission will continue to crackdown on any misleading pricing practices in the grocery sector in the coming year. View the Commission's media release here: https://lnkd.in/gw34H-Fk View the Commission's enforcement priorities here: https://lnkd.in/gADvMppj

This action by the Commission is consistent with grocery breaches being one of the Commission's recently announced specific enforcement priorities. It is a good reminder not just for supermarkets but for all those operating the retail space that good processes for ensuring pricing integrity are in place.

The Coles Woolworths Duopoly - taken to Court by ACCC for alleged pricing deceit which is reported to adversely affect Australians buying their household groceries. I commend the ACCC for attending to such an important issue. If this is accurate, it is a particularly despicable practice, given Australians are facing significant financial & economical hardship. The Coles/Woolworths marketing strategies rely on us to be fooled by their unethical behaviour, to enable even greater profit. If I was still a shareholder, I would be offloading all shares immediately. Who would want to be associated with such deliberate, manipulative corporate behaviour against the Australian community? What’s worse, one of these corporations now have a major influence on Australian medication sales, through large Pharmaceutical-related acquisitions. If Coles & Woolworths are found to be guilty of deliberately deceiving Australian consumers with everyday groceries, where does that leave us with medication and healthcare? The lawyersweekly.com article reports that Coles/Woolworths supermarkets “offered certain products at a regular price for at least 180 days, then increased the price of the product by at least 15 per cent for a relatively short period of time, and subsequently placed it onto their “Prices Dropped” or “Down Down” program.”(lawyersweekly.com.au) If found guilty of this despicable behaviour, perhaps this will only be the beginning for these Corporations being brought “Down Down” themselves.

See (re) post by my partner Alicia Murray on #grocery #competition #consumerlaw in #nz. Never a dull day in competition law land! There’s a sense of momentum to drive more competitive and efficient markets. #nzcompetition #nzantitrust #competitionlaw #competition #consumerlaw #grocery Emma Westbrooke Mariam Rasheed Michael Lim Jane MatthewsMatthews Law

Recently our CEO Erin Turner chatted to @Georgia-Roberts about the new grocery #CodeofConduct. While the #GroceryCode is a positive step that may increase product variety, it mainly addresses suppliers. But what could it mean for consumers? "I hope this means that large supermarkets take a fairer and likely lower cut, and it doesn't hit consumers' bottom line, but it's something we're going to have to watch closely," Erin said. She advocates for an "unfair trading prohibition" to fill gaps in Australian law and prevent unfair treatment of customers. As multiple inquiries into grocery prices continue, such a measure could be crucial in preventing misleading pricing and confusing "specials". Read the article via Australian Broadcasting Corporation (ABC) https://ow.ly/1Anx50Ssxvo #ConsumerRights #RetailPricing #SupermarketRegulation

The Australian government has made some key changes to the unit pricing code to tackle shrinkflation head-on. The idea is to make it much easier for consumers to compare prices based on weight, volume, or units, so they can spot when they’re getting less for the same price. One specific change is the push for clearer and more consistent unit pricing. In the past, many supermarkets had labels that were hard to read or used different units of measurement, making it tricky for shoppers to figure out the best deal. Now, the updated code requires all stores to display unit prices more visibly and consistently, so comparing prices becomes a lot simpler. The new rules also expand unit pricing to cover more retailers. This means more stores will have to follow the law, making it harder for businesses to use shrinkflation without consumers noticing. Any supermarket caught breaking these rules will face tougher penalties. Consumer advocacy groups like Choice are happy with these changes. Others are even pushing for stores to put up shelf labels that tell customers when a product has shrunk but the price hasn’t changed, making shrinkflation even more transparent. These updates highlight the importance of price transparency. For businesses, being transparent with pricing isn’t just about following the law—it’s about building trust with customers, especially when people are watching their budgets closely. #pricingnews #taylorwellspricing #shrinkflation Sources: https://lnkd.in/dwyuC-xT https://lnkd.in/dfzCG8gT

The Australian government has made some key changes to the unit pricing code to tackle shrinkflation head-on. The idea is to make it much easier for consumers to compare prices based on weight, volume, or units, so they can spot when they’re getting less for the same price. One specific change is the push for clearer and more consistent unit pricing. In the past, many supermarkets had labels that were hard to read or used different units of measurement, making it tricky for shoppers to figure out the best deal. Now, the updated code requires all stores to display unit prices more visibly and consistently, so comparing prices becomes a lot simpler. The new rules also expand unit pricing to cover more retailers. This means more stores will have to follow the law, making it harder for businesses to use shrinkflation without consumers noticing. Any supermarket caught breaking these rules will face tougher penalties. Consumer advocacy groups like Choice are happy with these changes. Others are even pushing for stores to put up shelf labels that tell customers when a product has shrunk but the price hasn’t changed, making shrinkflation even more transparent. These updates highlight the importance of price transparency. For businesses, being transparent with pricing isn’t just about following the law—it’s about building trust with customers, especially when people are watching their budgets closely.