ACCC still ‘concerned’ about Woolworths and Coles discounts

Australia’s consumer watchdog says customers’ concerns in the supermarket and retail sector remain a key priority in the year ahead.

The Greens have called a Senate inquiry into supermarkets. Picture: NewsWire

Australia’s consumer watchdog has put major supermarkets and retailers on notice that they are still in its sights, vowing to investigate them to help protect Aussie consumers.

ACCC chair Gina Cass-Gottlieb said consumer costs remained front of mind for the consumer watchdog in a speech at a Committee for Economics Developments of Australia event.

“Consumers are still doing it tough and the cost of groceries and essential services have contributed to significant cost of living stress,” Ms Cass-Gottlieb said.

Consumer watchdog Gina Cass-Gottlieb said the major supermarkets remain in the ACCCs sights. Picture: NewsWire / Christian Gilles.

“We will continue to work hard to protect consumers by using the full range of our tools and powers to enhance competition and fair trading, through tough and rigorous enforcement as well as targeted compliance and education initiatives.”

Ms Cass-Gottlieb said competition was good for markets, the economy and growth as a whole.

“Competition promotes higher growth rates, higher household incomes and a strong Australian economy,” she said.

“And competition contributes to a better standard of living and a better way of life.”

The Australian Competition and Consumer Commission is currently taking Coles and Woolworths to court over allegations they misled shoppers by offering fake discounts across hundreds of items.

The ACCC alleges Woolworths made false or misleading representations to consumers about the prices of 266 products during the period between September 2021 and May 2023.

While it is alleged Coles made false or misleading representations to consumers about the prices of 245 products during the period between February 2022 and May 2023.

Both Woolworths and Coles deny the allegations.

Woolworths and Coles still face allegations of false discounting. Picture: NewsWire / Roy VanDerVegt

Woolworths and Coles still face allegations of false discounting. Picture: NewsWire

The speech comes just days before the ACCC final report into the supermarkets is due to be handed to the Albanese government.

The ACC 266-page interim report into the supermarket sector, released last year, found many Australians have lost trust in the supermarkets.

But the ACCC will also keep close tabs on other sectors.

Ms Cass-Gottlieb said market concentration was a growing challenge across the Australian economy, including aviation, digital platforms and many of our essential services.

“Australian consumers and small businesses are likely to feel the impact of any anti-competitive conduct in essential services on price, choice and quality of services,” Ms Cass-Gottlieb said.

“Therefore, in 2025 to 2026, the ACCC will continue to prioritise promoting competition in essential services with a focus on telecommunications, electricity, and gas.”

In addition to these cost of living measures, the ACCC will add a new priority, to address misleading surcharging practices and other add-on costs.

“We have previously taken enforcement action against merchant surcharging that exceeds the cost of card acceptance,” she said.

“In the year ahead, our work will focus on increasing business compliance with the excessive card payment surcharging prohibition, and improving pricing practices to ensure all add-on costs are appropriately disclosed.”

Originally published as ACCC still ‘concerned’ about Woolworths and Coles discounts