Australia’s biggest supermarkets and the country’s top competition watchdog are currently locked in a bit of a price-tag tug-of-war - one that might make you think twice the next time you spot a “special” in the grocery aisle.
The Australian Competition and Consumer Commission (ACCC) has taken Coles and Woolworths to court, accusing them of playing fast and loose with discount claims. Basically, the ACCC says the supermarkets advertised flashy markdowns, but in some cases, the “discounted” prices were actually higher than what the items cost originally. Whoops.
Naturally, the supermarkets aren’t taking that lying down. They’re arguing over just how many products should be looked at in the trial. The ACCC wants to put 12 items under the microscope. Meanwhile, Coles and Woolies think six other items should be included too - so now everyone’s haggling over which groceries make the cut.
Some of the products in question? Think everyday stuff like Dettol hand wash, marinades, dog treats, and baby formula. The ACCC listed hundreds of questionable price tags, but everyone agrees that combing through all of them would take longer than a Woolies self-checkout on a busy Sunday.
Justice Michael O’Bryan, overseeing the case, diplomatically suggested both sides play nice and narrow it down before July. Ideally, he said, fewer than 15 products would make the whole trial a lot less painful for everyone.
“I’m not going to lose sleep if the number is 12 or 16,” he said in court, adding that a reasonable number would help make the trial run smoothly. “Let’s not die in a ditch over a couple of extra products,” he joked - though maybe only half-joking.
Things got a bit spicy on Friday when the judge scolded the ACCC for springing a hefty data request on Coles and Woolworths with barely any notice. Calling it “appalling practice,” he reminded the watchdog that even supermarket giants need a bit of prep time.
Woolworths’ lawyers mentioned the ACCC had originally proposed 20 sample products but suddenly scaled back to 12 the night before. We still don’t know exactly what items made the shortlist, but they’re not sharing the grocery list just yet.
Meanwhile, on a separate note, Coles and Woolies both told the court that most of the price hikes flagged by the ACCC were actually requested by their suppliers - not the supermarkets themselves.
Outside the courtroom, the ACCC recently wrapped up a year-long deep dive into the grocery industry. The verdict? Coles and Woolies weren’t directly blamed for rising living costs, but the regulator did suggest some changes. Among them: requiring supermarkets to publish their prices online (transparency, anyone?), sharing better data with suppliers, and tweaking zoning laws so smaller players can set up shop more easily.
So, while this courtroom drama may not be binge-worthy TV, it could shake up the way we shop - and how often we fall for a “bargain” that might not be so special after all.
