AUSTRALIA | The ACCC will closely examine the retail margins of eight product groups, including milk, bread rolls and chocolate, as part of its work under the supermarkets' excessive pricing legislation.
In selecting the focus products, the ACCC considered a range of information, including reports from consumers and suppliers; whether the product is considered essential or discretionary; and the products' prices during the 2024-25 and 2025-26 financial years, as well as margins and sales revenue.
The ACCC has announced it will initially focus on the following product categories:
- potatoes
- limes
- chicken, bone-in
- unflavoured fresh milk
- bread rolls
- chocolate (blocks and snack bars)
- coffee
- kitchen sponges and scourers
ACCC Deputy Chair Mick Keogh said it was important to note that just because a product is on the focus list, it doesn’t mean that ACCC is currently considering that supermarkets are obtaining unreasonable margins on these products.
“It signals that we think the pricing of the product warrants closer examination. Our compliance monitoring is not limited to the announced focus products," said Keogh.
"We will continue to obtain and analyse margin and pricing information for all grocery products available at Coles and Woolworths, alongside reports from consumers and suppliers."
This work matters to Australian consumers who are acutely aware of price increases in their supermarket shop.
The focus product groups represent more than 1000 items available across Coles and Woolworths supermarkets.
While the ACCC may take enforcement action if appropriate, it will initially focus on monitoring compliance with the new laws. Monitoring is not confined to this first tranche of focus products. Additional focus products subject to closer examination will be announced next year.
The ACCC will publish an initial monitoring report in early 2027, covering focus product prices, costs and margins. This report will draw on pre-prohibition data and provide a baseline for future compliance monitoring.
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