The Albanese Government has unveiled draft legislation aimed at cracking down on excessive pricing by Australia’s largest supermarket chains, delivering on a key election promise to protect consumers from what the Prime Minister has described as “unfair and opportunistic profiteering.”
The proposed laws, released on Monday, will make price gouging illegal, targeting practices such as “shrinkflation” — where product sizes are reduced without corresponding price cuts — and misleading promotions and loyalty schemes. Under the reforms, supermarkets found guilty of excessive pricing could face multi-million dollar fines, enforced by the Australian Competition and Consumer Commission (ACCC).
Speaking from Canberra, Prime Minister Anthony Albanese said the reforms were designed to ensure Australian families “get a fair deal at the checkout.”
“Labor will make price gouging by supermarkets illegal. We’re acting to make sure powerful corporations cannot exploit Australians during a cost-of-living crisis,” Mr Albanese said.
The government’s move follows an ACCC report earlier this year, which called for tougher regulation of supermarket pricing transparency, promotional practices, and product size manipulation. The report noted that the industry is “highly concentrated with an oligopoly structure dominated by Coles and Woolworths,” even though it stopped short of labeling it a formal duopoly.
Both Coles and Woolworths have faced mounting public scrutiny for posting strong profits — $1.08 billion and $1.4 billion respectively — at a time when household budgets are under severe pressure. German retailer ALDI, which continues to expand its footprint in Australia, reported a $402 million profit in 2023.
The draft laws will now undergo a two-week Treasury consultation period until November 3, during which stakeholders and consumer advocacy groups can provide feedback. Once finalized, the reforms will form part of the Competition and Consumer Amendment (Make Price Gouging Illegal) Bill, already before the Senate.
Treasurer Jim Chalmers said the new framework would help prevent “corporate greed from driving up the price of everyday essentials.”
Under the proposed system, the ACCC will have powers to investigate cases of excessive pricing and impose penalties where supermarkets are found to have acted unreasonably or deceptively.
The announcement comes amid growing political and public anger over rising grocery prices, with inflation and supply chain costs continuing to affect household spending. The government hopes that increased transparency and stronger enforcement will not only reduce unfair pricing but also rebuild consumer trust in the retail sector.
Opposition critics, however, have warned that the reforms could create additional compliance costs for businesses and lead to unintended market distortions — an argument the government rejects, insisting that fairer pricing is both achievable and necessary.
As Albanese put it:
“This is about fairness, transparency, and accountability — making sure Australian families are not paying more than they should for the basics.”
