The Albanese Government has announced new measures to combat the growing practice of ‘shrinkflation’ in supermarkets and retail, aiming to protect Australian consumers from deceptive pricing practices.
As per statement, the government will strengthen the Unit Pricing Code, making it easier for shoppers to accurately compare prices and get the best value for their money.
Shrinkflation refers to the practice where the size of a product is reduced while the price remains the same, or even increases. With packaging often unchanged, this can mislead consumers, especially those doing their weekly grocery shopping.
The strengthened Unit Pricing Code will help address this issue by ensuring Australians can clearly see the price of products based on their volume, weight, or per unit, preventing them from being caught out by shrinking products disguised by familiar packaging.
The Albanese Government is also set to introduce hefty penalties for supermarkets found in breach of the Unit Pricing Code, cracking down on any retailers engaging in misleading practices.
“Stronger unit pricing and new penalties are part of our plan to ensure Australians get a better deal at the supermarket,” said Prime Minister Anthony Albanese.
“We are committed to making sure the ACCC [Australian Competition and Consumer Commission] remains a tough cop on the beat, holding supermarkets accountable and ensuring there are real consequences for those doing the wrong thing.”
An ACCC Interim Supermarket Inquiry Report, released last week, revealed that nearly 90% of Australian consumers regularly use unit pricing to make informed purchasing decisions. However, concerns were raised during the inquiry about the inconsistent use of unit measurements, as well as the visibility and readability of unit prices on supermarket labels.
In response, the government plans to consult on several improvements to the Unit Pricing Code, including:
- Enhancing the visibility and readability of unit pricing in stores;
- Addressing inconsistencies in units of measurement used across different retailers;
- Expanding the scope of retailers covered by the Code;
- Introducing clearer rules on how prominently unit pricing should be displayed; and
- Improving the use of unit pricing in cross-retailer price comparisons.
The ACCC will also receive funding to launch a consumer awareness campaign, helping shoppers identify the best deals by teaching them how to use unit pricing effectively.
Assistant Treasurer Stephen Jones emphasised the importance of protecting Australians from unfair pricing tactics. “Misleading practices around pricing are illegal and inappropriate. Australian consumers deserve transparency and fair prices – not dodgy discounts,” Jones said.
“We have empowered the ACCC to take swift action against businesses trying to take advantage of consumers.”
This latest initiative follows a series of measures from the Albanese Government aimed at reducing the cost of living for Australians. These include a $30 million funding boost for the ACCC to crack down on market practices that increase living costs, consultations on a new mandatory Food and Grocery Code, and steps to revitalise National Competition Policy.
Assistant Minister for Competition Andrew Leigh reinforced the government’s commitment to fairness in the supermarket industry.
“We want a system that is fair for families and for farmers. By holding supermarkets to account and giving consumers the information they need, we’re helping Australian families save time and money at the checkout,” Leigh said.
With the proposed changes, the Albanese Government aims to ensure consumers are better equipped to spot misleading pricing tactics and make informed purchasing decisions, ultimately helping to ease the financial strain at the supermarket.
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