Anthony Albanese vows to do ‘whatever is necessary’ to lower food prices after ACCC signals legal action against supermarkets

The Prime Minister issued a stern warning to supermarket chains as potential litigation looms.

Mr Albanese pledged to put cost-of-living at the forefront of his 2024 agenda. Picture: Chris Hyde/Getty Images.

Anthony Albanese has vowed he will do “whatever is necessary” to lower food costs after the consumer watchdog flagged it is considering legal action against supermarket chains using deceptive pricing tactics.

The prime minister said the head of the Australian Competition and Consumer Commission (ACCC) was “carefully” looking at potential litigation against supermarket giants which are found to be price gouging customers.

It comes as he considers launching a major probe into supermarket pricing amid concerns over the gap between what customers and retailers are paying for produce.

“We want to make sure that people are paying the lowest possible prices when they get to a checkout,” Mr Albanese said on Tuesday.

“That’s our priority, along with other measures to assist people and I’ve said very clearly we’ll look at ways to put to take pressure off the cost of living whilst not putting pressure on inflation.”

Both Woolworths and Coles have repeatedly denied accusations of price gouging. Picture: NCA NewsWire

The ACCC’s signaling of the possibility of legal action came after grocery giants Coles and Woolworths posted annual profits of more than $1 billion in 2023. At the same time grocery prices for consumers rose by up to 7.5 per cent, according to June figures from the Australian Bureau of Statistics (ABS).

A spokesman from Woolworths said the company was committed to offering customers value while working with suppliers to manage economy-wide pressures.

“We know Australians are feeling the strain of cost of living and we are working to deliver relief in their weekly grocery shop,” they said.

While grocery costs significantly rose during 2023, inflation levels for food in Australia dropped to 4.6 per cent in November - down from 5.3 per cent in the previous month.

Woolworths and Coles have been under intense scrutiny following accusations of price gouging. Picture: NCA NewsWire/Tertius Pickard

The federal government announced a review of the grocery code in September which will examine how the government can potentially look at strengthening consumer rights.

Former Labor Trade and Consumer Affairs Minister Dr Craig Emerson, who has been appointed to lead the probe, met with the Prime Minister on Monday.

In addition to potential legal action by the ACCC and a review of the grocery code, there is also a Greens-led Senate inquiry into supermarket behaviour which is due to kick off when parliament resumes in February.

Speaking after a cabinet meeting on Monday, the Prime Minister also flagged further announcements for cost-of-living relief over the coming days.

“We know that the cost of living pressures are there and we know that the fight against inflation is not over,” Mr Albanese said.

“We’ll continue to look for targeted cost of living relief, how we can make a difference for people without adding to inflation.”

Originally published as Anthony Albanese vows to do ‘whatever is necessary’ to lower food prices after ACCC signals legal action against supermarkets