Bargain hunters could soon notice a big change at the supermarket, with new anti-price-gouging laws potentially leading to fewer discounts on shelves.
From July 1, new federal laws have made it illegal for Australia’s biggest supermarket chains to charge prices considered “excessive” compared to their costs. The laws apply to Coles and Woolworths, with the ACCC now responsible for enforcing the new rules.
Why discounts could disappear
While the legislation is designed to protect shoppers from unfair pricing, retail experts warn it may have an unintended side effect.
Rather than risk falling foul of the new laws, supermarkets could become more cautious with their pricing. That could mean fewer short-term specials, smaller discounts, and products staying at the same price for longer, rather than regularly dropping into weekly catalogues.
The ACCC is expected to monitor groups of everyday grocery items, with fines of up to $10 million per breach available if supermarkets are found to be charging excessive prices.
Will it actually save shoppers money?
That’s the big question.
Supporters believe the laws will help prevent unfair price hikes during the ongoing cost of living crisis. However, some economists and retailers argue the rules are vague and could discourage supermarkets from offering the deep discounts shoppers have come to expect.
For now, Aussie shoppers may want to keep an even closer eye on those yellow special tickets because they could become a little less common.
