Concerns Over Per-Item Pricing Practices in Australian Supermarkets

The Australian Competition and Consumer Commission (ACCC) has raised concerns regarding the increasing trend of major supermarkets, including Coles, Woolworths, and Aldi, charging customers for fresh produce on a per-item basis rather than by weight. This practice has led to significant price discrepancies that can confuse consumers. For instance, at a Woolworths store, smaller "lunchbox" bananas were sold in bunches at a price that, when calculated per kilogram, was double that of larger bananas priced by weight. ACCC chair Gina Cass-Gottlieb emphasized the need for consistent pricing units to enhance transparency for shoppers, particularly as grocery prices continue to rise amid inflationary pressures.

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In response to these pricing practices, the Albanese government has indicated intentions to strengthen the unit pricing code, although specific reforms have yet to be announced. Cass-Gottlieb noted that misleading pricing claims are particularly harmful during times of economic strain, as families rely on accurate discounts to manage their budgets. The ACCC is currently pursuing legal action against Coles and Woolworths for allegedly offering misleading discounts, which may not reflect genuine price reductions. Cass-Gottlieb stated, “When families are seeking to save money, they really look for a discount… They are significantly short-changed and harmed when they (discounts) are not truthful.”

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Consumer advocates, including Ian Jarratt from the Queensland Consumer Association, argue that all produce should be priced and displayed by weight to ensure fairness and transparency. Jarratt criticized the current system, stating, “The base problem with what supermarkets are doing is that there is not sufficient transparency.” He suggested that while approximate item prices could be provided, the primary pricing should adhere to a per-kilogram basis to prevent consumers from being penalized based on the size of the produce they select.

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The ACCC's lawsuits against Coles and Woolworths are part of a broader initiative to address misleading pricing practices in the retail sector. The commission has warned of potential further legal actions under new price-gouging laws set to take effect in July 2026. These regulations will prohibit large retailers from charging excessive prices compared to supply costs plus a reasonable margin, with penalties reaching up to $10 million for violations. As the legal proceedings continue, the outcomes may significantly impact how supermarkets price their products and communicate discounts to consumers.

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While the ACCC has highlighted the need for regulatory changes, the Albanese government has not yet detailed specific reforms to address the rise of per-item pricing. Additionally, the supermarkets involved have defended their pricing strategies, arguing that per-item pricing can simplify budgeting for consumers. However, the lack of transparency in these practices remains a point of contention among consumer advocates and regulatory bodies.

The Guardian

• “It is of concern,” — Gina Cass-Gottlieb, ACCC Chair

The Guardian

• “If they want to give an approximate item price they can do that, but it should be charged on a per kilo basis,” — Ian Jarratt, Consumer Advocate

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• “We continue to find, and this is of more intense impact in times of rising cost-of-living pressures, that there are pretty blatant misleading pricing claims,” — Gina Cass-Gottlieb, ACCC Chair

The Sydney Morning Herald