World-first laws set to protect Aussie customers at the supermarket checkout

Australians will soon have another cost-of-living measure on their side when supermarket price gouging becomes illegal on July 1.

Under the world-first anti-price-gouging law, supermarkets found to be charging outside what’s deemed a “reasonable margin” could face fines of up to $10 million.

Coles and Woolworths are the only two supermarkets impacted by these new laws, as they are the only ones that qualify as “very large retailers” with more than $30 billion revenue.

The Australian Competition and Consumer Commission (ACCC) has committed to conducting “regular compliance checks” to make sure Coles and Woolies aren’t ripping customers off.

But the laws don’t put a figure on what constitutes an excessively priced grocery product.

“This is all about protecting consumers at the checkout,” Assistant Competition Minister Andrew Leigh said.

“We deliberately haven’t put numbers around this. To do that would risk the system being gained and a worse deal for consumers.”

Both supermarket Goliaths deny engaging in price-gouging behaviour in the past and UNSW consumer law expert Ray Steinwell says proving price gouging has occurred could be difficult.

“It will be a little bit difficult for the ACCC to enforce and I think it will be challenging also for Coles and Woolworths,” Steinwell said.

“Would you look at what the price is by a competitor? Would you look at what the price is for a substitutable product?”

With Australians struggling with increasing financial pressures, the supermarket checkout has been carved out as a crucial battleground.

While the price gouging legislation appears to show the Albanese Government acting on cost-of-living issues, the Liberals don’t agree.

They’re establishing their own line of attack, especially in the face of the rise of One Nation.

“The reason Australians are paying higher prices in their red basket or trolley is because the government keeps stoking inflation,” Shadow Treasurer Tim Wilson claimed.

“Our focus in the lead up to the next election is going to make sure that we’re a united team that can go on and prosecute the case.

“It’s not going to come down to one person, it’s going to come down to all of us.”