PM warns big supermarkets on treating customers like “fools”

Anthony Albanese has urged major supermarkets stop treating Australians “like fools” in a clear warning shot to Coles and Woolworths.

Anthony Albanese has warned big supermarkets to stop treating customers “like fools” amid claims that Coles and Woolworths promoted misleading discounts on hundreds of everyday supermarket products.

The Prime Minister issued the warning in Canberra today as he released an exposure draft of the new mandatory Food and Grocery Code that will see Aldi, Coles, Woolworths and Metcash subject to multimillion-dollar penalties for serious breaches of the code.

Prime Minister Anthony Albanese. Picture: NewsWire / Martin Ollman

The amendments will introduce higher maximum penalties for breaches and higher infringement notice penalties for alleged breaches of the Food and Grocery Code and other industry codes. Legislation will be introduced into the parliament later this year.

However, as Coles and Woolworths face claims they promoted “misleading” discounts on hundreds of common supermarket products, Mr Albanese said authorities would deal with any misuse of market power.

“These are serious allegations that the ACCC is bringing before the courts. If this is found to be true, it’s completely unacceptable,’’ Mr Albanese said.

New mandatory Food and Grocery Code will hold supermarkets accountable for breaches with multimillion-dollar penalties. Picture: NCA NewsWire / Naomi Jellicoe

“This is not the Australian spirit. Customers don’t deserve to be treated as fools by the supermarkets. They deserve much, much better than that.”

The big supermarkets are accused of hiking prices for brief periods before being placed in Woolworths’ “Prices Dropped” promotion and Coles’ “Down Down” promotion, at prices lower than during the price spike but higher than, or the same as, the regular price.

“As it’s before the courts, it would be inappropriate to comment further, but we will examine as the courts are able to deliberate,’’ Mr Albanese said.

“Shoppers are on the hunt for discounts when they do their weekly grocery shop, because every dollar matters when people get to the checkout. Advertised discounts need to be genuine – each and every time.

Coles and Woolworths face allegations of promoting misleading discounts on common supermarket products.

“Specials need to be real because household budgets are tight. And I welcome the ACCC standing with supermarket shoppers.”

The allegations relate to the December quarter when inflation peaked at 7.8 per cent, prompting questions over whether the supermarket’s actions contributed to inflation and, in doing so, contributed to the Reserve Bank’s interest rate hikes.

“When you’re charging more for products than you should, it, of course, has an inflationary impact by definition,’’ Mr Albanese said.

“As I’ve said, they’re being hauled before the courts. That matter is now before the courts. We’ve made it very clear that if the allegations that have been made – and they’re specific by the ACCC, are correct, then that’s a very serious breach.”