UPDATE: Australia is set to combat the pervasive issue of “shrinkflation” as the federal government announces a major crackdown on grocery pricing. Beginning Monday, consultations with industry and consumer groups will explore stricter pricing regulations aimed at ensuring transparency for consumers, following revelations from the Australian Competition and Consumer Commission’s (ACCC) supermarket inquiry.
The inquiry, which highlighted that Australian supermarkets are among the most profitable globally, revealed that companies have been reducing product sizes while maintaining prices, frustrating consumers. Assistant Minister for Productivity and Competition Andrew Leigh stated, “Every time I speak to constituents about this, I’m flooded with examples of where people feel as though they’re getting ripped off by retailers.”
Leigh pointed out specific instances of shrinkflation, including a popular toilet paper brand that reduced the size of its squares from 11 centimeters to 10 centimeters. The public outcry over these practices has prompted the government to act decisively, with plans for companies to clearly notify consumers when they reduce product sizes.
The ACCC’s report, released in March, made 20 recommendations aimed at improving supermarket competition and enhancing consumer experience, including a push for more prominent unit pricing displays on shelves. Leigh noted that the current Unit Price Code, which governs supermarket pricing, primarily covers larger retailers, and discussions will consider including smaller ones as well.
The government is also contemplating implementing court-imposed fines for companies that fail to comply with these new regulations. “We want to make sure that consumers have the information they need to make informed decisions at the checkout,” Leigh emphasized, highlighting the need for standardized unit comparisons to avoid confusion.
The consultations will run for three weeks, allowing the public to voice their concerns and suggestions on how to effectively tackle shrinkflation. “We’re looking at making it easier to expose brands offering less value for money,” he added, underscoring the government’s commitment to protecting consumer interests.
In response to ongoing price gouging during the current cost-of-living crisis, the government has allocated $30 million to the ACCC to enhance monitoring efforts in the grocery sector. This funding is aimed at ensuring consumers are not misled by retailers and to empower consumer advocacy groups like CHOICE to provide more information on supermarket prices.
As these consultations commence, Australians are encouraged to participate actively to influence potential changes that could reshape grocery shopping experiences across the nation. The push against shrinkflation is not just about transparency; it’s about ensuring shoppers receive fair value for their money.
