Prime Minister Backs Tougher Action Against Major Supermarket Chains

The prime minister, Anthony Albanese, has backed the competition regulator’s lawsuit against Coles and Woolworths saying customers don’t deserve to be treated as “fools.”
In an address on Sept. 23, Albanese said his government was determined to introduce legislation that would punish Aldi, Coles, Woolworths, and Metcash for serious breaches with multi-million-dollar penalties.
He noted that the government’s review earlier this year made it clear that the existing voluntary code “has not been good enough.”
“My government wants to ensure that Australian consumers get a fair go when families are doing it tough; they need a government that’s on their side,” Albanese told reporters.
The prime minister’s statement comes in response to two major developments.
First, the Treasury Department has invited feedback on its draft code aimed at improving competitiveness in the supermarket sector.
The Competition and Consumer (Industry Codes—Food and Grocery) Regulations 2024 propose several changes, including making the Food and Grocery Code of Conduct mandatory, enhancing dispute resolution processes, addressing supplier concerns, and introducing significant penalties for breaches, according to a statement issued by Treasury on Sept. 23.
Secondly, the Australian Competition and Consumer Commission (ACCC) has taken the two biggest supermarkets to court for misleading consumers.
Woolworths Group Limited and Coles Supermarkets are accused of breaching Australian Consumer Law by making misleading “discount pricing” claims on hundreds of everyday supermarket products.
According to the ACCC, select products saw price increases of at least 15 percent over some time before being included in Woolworths’ “Prices Dropped” promotion and Coles’ “Down Down” promotion.
“These are serious allegations that the ACCC is bringing before the courts. If this is found to be true, it’s completely unacceptable. This is not the Australian spirit,” he added.
Finance Minister Katy Gallagher stated that the proposed legislation is a subset of their response to the cost-of-living pressures.
“A quarterly report on this issue will be released soon, and the ACCC’s inquiry into supermarkets will report early next year. These efforts aim to ease financial pressure on households and ensure families receive better deals on their shopping.”
Taking a dig at the opposition, Albanese added that, unlike the previous Coalition government, which relied on voluntary agreements, Labor advocated for stronger ACCC powers and a mandatory code of conduct for supermarkets.
These amendments, which follow former MP Craig Emerson’s independent review, aim to create a fairer playing field between suppliers and retailers like Coles and Woolworths.
The proposed amendments to the Competition and Consumer Act 2010 are open for consultation until Oct. 18, 2024.