Pricing issue that left budget shop worker ‘physically hurting’
An enormous difference in the price between two major Australian retailers has caused upset among consumers.
Retail
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A dramatic difference in the price of the same toothpaste at two Australian companies has exposed a pattern so insane that it “almost physically hurts” a young retail worker said.
A tube of Oral-b 3d White Whitening Emulsions is selling for $60 at Woolworths, while at The Reject Shop it’s on sale for $6 – 10 times cheaper.
The huge difference upset an employee from The Reject Shop.
“My daughter works for The Reject Shop and it almost physically hurts her to see some of the prices at Woolworths,” the parent posted to Facebook over the weekend.
She showed the two products side-by-side and said they served as “an example that has us wondering why” prices are so much higher at Woolworths.
The product was $60 online at Woolworths earlier this week and has since dropped to $20.
The post received fierce reaction from hundreds of consumers, many who felt similar despair to the young employee.
“Would do the same job as well. Don’t see the point of spending ridiculous amounts,” one response read.
“Price difference is crazy. I buy my Vanish powder 2kg bucket at Reject Shop for $20 and at Woolies it’s $42,” another person commented, with one other describing the practice “disgusting”.
“My daughter got a pack of Oreos from The Reject Shop, then went to Woolworths, same pack of biscuits $4 MORE than what she had already paid,” someone else said.
Many however suggested that products sold at The Reject Shop were likely parallel products, which according to the ACCC is “when a business sells a product that has been brought into Australia, but the business doesn’t have the specific permission of the product’s manufacturer to sell the product in Australia”.
Parallel imports were sometimes called grey imports or direct imports.
The ACCC outlined risks associated with purchasing parallel products from places like The Reject Shop, including the fact overseas manufacturer warranties may not be valid.
Consumers should also be mindful of legal difficulties in enforcing their rights against an overseas business, that products may not be designed for Australian conditions, and electrical products may not work with Australian plugs or voltage.
Electronic products such as gaming consoles may not be licensed for use in Australia, the ACCC said, and food may have different ingredients to similar products in Australia.
Consumers argued in comments to the post however that many products had either the same or similar ingredients as their legitimate version.
“Doesn’t make a difference to me. Happy to use the cheaper product,” one unphased consumer said.
The Reject Shop’s chief operating officer Amy Eshuys said the retailer assured the quality of products prior to importing them and made sure they were in compliance with local laws.
“Just like our customers, our team seek out value and are always looking for the best deals. We negotiate with our customers in mind, to secure the best price for the same quality products as the other guys,” Ms Eshuys said.
“We will only accept products that can be assured of quality and comply with Australian Consumer Law, so our customers can be confident that they truly are getting the best value.
With the current cost of living pressures being faced by Australian families, we reject weekly specials and offer the lowest prices every day.”
Woolworths couldn’t comment on the price gap, instead referencing its weekly specials and recent price drops.
“We work hard to provide value to our customers on a range of household essentials and that’s why we offer around 6000 specials every week and have recently dropped the price on more than 450 products,” a spokesperson said.
Originally published as Pricing issue that left budget shop worker ‘physically hurting’