Australia,Canberra, The Australian Competition and Consumer Commission (ACCC) has accused major supermarket chains Coles and Woolworths of violating consumer law by temporarily inflating prices before reducing them to levels that are either the same or higher than the original prices. Prime Minister Anthony Albanese described the alleged behavior as completely unacceptable and emphasized that customers should not be treated as fools. He also announced draft legislation for a new code of conduct aimed at improving supermarket practices.

ACCC chair Gina Cass-Gottlieb highlighted that Coles and Woolworths have promoted discounts through campaigns like 'Prices Dropped' and 'Down Down', which consumers have come to expect as genuine reductions. However, the ACCC found that these discounts were often misleading, with Woolworths providing false information on 266 products over 20 months, and Coles on 245 products over 15 months. The ACCC estimated that the two retailers generated significant revenue from these misleading promotions, impacting tens of millions of products.

The ACCC is pursuing significant penalties against both companies, emphasizing the importance of accurate pricing and discount claims, especially amid rising cost-of-living pressures for consumers. In response, Coles acknowledged its rising expenses and its commitment to consumer law, while Woolworths stressed the importance of delivering meaningful value to its customers.

Additionally, the government has initiated a review of the Food and Grocery Code of Conduct, proposing a stronger mandatory code to better protect suppliers and consumers, with the ACCC tasked to enforce these new measures.