The consumer watchdog wants your opinion on grocery prices

High grocery prices, domination by Coles and Woolworths and other consumer gripes are now set to form part of the supermarket inquiry — and it wants to hear from you.

Misleading grocery price labelling, “shrinkflation’’ and the dominance of the two major supermarket chains will be canvassed as part of a major online survey launched by the Australian Competition and Consumer Commission.

The ACCC announced on Thursday it was canvassing the views of ordinary Australians as part of its ongoing supermarkets inquiry, which is investigating whether practices such as price gouging are increasing cost of living pressures.

The ACCC has released an issues paper setting out the matters it will look at, and is calling for submissions from consumers and industry participants, including supermarket suppliers, with that process running until April 2.

Consumers can be involved by making a submission, or completing an online survey which takes about 10-15 minutes, on the ACCC’s consultation hub.

The issues paper says that the costs faced by Australian households have “risen faster than usual in recent years due to complex and related factors’’.

“Higher-than-average inflation (and resulting falls in real wages), rising interest rates and

mortgage repayments, and increasing prices of goods and services reduced Australian

households’ real disposable income in 2022–23,’’ the ACCC says.

“Grocery prices have also increased. Between December 2021 and December 2023, the food

and non-alcoholic beverages consumer price index increased by 14.1 per cent.’’

The ACCC says a survey conducted by Finder in February this year found that 42 per cent of those surveyed cited grocery bills as a “chief financial stressor’’.

High grocery prices are an increasingly pressing concern fotr Australian households.

The ACCC will focus in part of the role of the supermarket duopoly on pricing, it says.

“The ACCC is aware of consumers’ concerns about growing costs of living, in particular the price of groceries, and how this is affected by the extent of competition between supermarkets,’’ it says in the issues paper.

“In particular, concerns have been raised regarding price gouging; that is, prices and profit margins that are considered unreasonably high (or higher than would be expected in a competitive market).

“We are also aware of consumer concerns relating to confusing and potentially misleading pricing practices, ‘shrinkflation’ (where smaller quantities of a good are retailed for the same price), and data and privacy concerns relating to supermarkets’ increasing use of technology. “The ACCC is aware these concerns are, at times, more severe in regional and remote areas.’’

The ACCC said suppliers were also raising concerns around issues such as price-setting and other contractual arrangements.

“In particular, the ACCC is aware of concerns alleging there is a growing disparity between the price farmers receive for their products (the ‘farmgate price’) and the retail price paid by consumers for those products at the checkout,’’ the issues paper says.

ACCC deputy chair Mick Keogh said consumers now had the chance to have their say on the issues affecting them.

“We will be using our legal powers to compulsorily obtain data and documents from the supermarkets themselves, but consultation with consumers and grocery sector participants is an important first step in our inquiry,’’ Mr Keogh said.

“One of our major focus areas will be the supermarkets’ approach to setting prices, and whether there is evidence to show that a lack of effective retail competition is contributing to higher prices,” Mr Keogh said.

“We will conduct a detailed comparison of the price suppliers receive for their goods and the price consumers pay at the checkout, and the profits the supermarkets earn.

“In addition, we will be looking at other issues such as loyalty schemes, discounting practices, the shift to online shopping and the impact of home-brand products.”

The ACCC expects to provide an interim report on the inquiry to Treasurer Jim Chalmers by August 31, with the final report to be ready on February 28 next year.

Originally published as The consumer watchdog wants your opinion on grocery prices