Supermarkets and retailers have warned a government ban on grocery price gouging could backfire, criticising the move as unprecedented and unfair for targeting only the biggest chains.
The Albanese government will announce on Sunday that it would ban price gouging in Coles and Woolworths, following a damning report from the competition watchdog earlier this year that revealed Australian supermarkets were among the most profitable in the world.
The Australian Competition and Consumer Commission (ACCC) launched an inquiry into the big supermarkets in 2024 after they were accused of failing to pass on savings to consumers during a cost-of-living crisis, but did not prove the companies were price gouging.
Under the amended Food and Grocery Code, supermarkets must only charge a reasonable margin on products. The new rules come into force on July 1, 2026.