Coles and Woolies blast new supermarket price gouging laws‘The law is ... creating an uneven playing field which will see much larger, foreign-owned retailers free to charge customers whatever they want.’3 min read

7NEWS

2025/12/14

The Albanese government has officially announced a ban on supermarket price gouging following a damning report from the country’s competition watchdog.Sunday’s announcement comes after the Australian ...

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Credit: AAP“This will fix a key gap in Australia’s competition and consumer protection framework and provide a safeguard for consumers,” the statement read.However, the major supermarkets have hit back at the law with Woolworths calling it “unprecedented” and accusing it of creating an “uneven playing field”.“We acknowledge the tabling of this regulation,” a Woolworths Group Spokesperson said.“Right now, we are absolutely focused on delivering the best value for customers.”Woolworths said the average prices in Woolworths Food Retail have declined “year-on-year for seven consecutive quarters”, which has brought “lower prices for customers”.“Today and every day, we compete vigorously for every item in our customers’ baskets,” they said.Woolworths said it is still focused on delivering the best value for customers. Credit: AAP“The law is unprecedented by targeting only two Australian-owned companies, creating an uneven playing field which will see much larger, foreign-owned retailers free to charge customers whatever they want, without any of the new proposed restrictions.”If the major supermarkets are found to be breaching the new price gouging laws, they could be slapped with a $10 million maximum penalty per contravention or three times the value of the benefit derived.If that value cannot be determined, 10 per cent of the company’s turnover during the preceding 12 months will be taken as penalty.Coles said it “urged the Government to tackle the real drivers of higher grocery prices for Australian families” saying increasing regulation is likely to put “upward, not downward, pressure on prices”.“At a time when the focus should be on easing cost-of-living pressures, these regulations risk doing the opposite.”The Australian Retailers Association (ARA) also took a swing at government, saying they were “strongly opposed” to the “excessive” pricing legislation and giving a stark warning.“These measures seek to address a problem for which there is no evidence and risk having the opposite effect — pushing grocery prices higher for Australian families,” ARA CEO Chris Rodwell said.“The ACCC Supermarkets Inquiry found no evidence of excessive pricing, and Dr Emerson’s Code Review reached the same conclusion. Introducing a subjective new measure that regulators did not recommend will increase legal risk, compliance costs and uncertainty across the grocery sector.”Rodwell said regulating the profitability of individual items risks making staples more expensive, particularly for lower-income households and regional communities.“The best way to put downward pressure on prices is to provide regulatory and tax relief,” he said.The ACCC will be responsible for policing the new excessive pricing regime.The Labor government said they have taken a number of steps to boost competition and fairness in the supermarket sector and give the regulator the “powers and the penalties” it needs to hold supermarkets to account.These included boosting funding for the ACCC, banning price gouging and making the food and grocery code mandatory — which came into effect in April this year.Multiple people hurt as car ploughs into pedestrians in Queensland1 min readAt least two killed, eight critical in mass shooting at prestigious American university3 min read","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"policyRegulatory","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}