Supermarkets in Australia under fire over pricing tactics

Govt taking action amid concerns that the practices are adding to cost-of-living crisis

- Jonathan Pearlman

The authorities in Australia are cracking down on the ploys used by major supermarket chains to boost prices amid concerns that unfair practices are deceiving customers and adding to the cost-of-living crisis.

Though consumer advocates have long warned about unscrupulous activities by the major supermarket chains Coles and Woolworths, a series of inquiries and a recent court action began to expose the extent of these practices.

The supermarket chains have been accused of ploys such as "shrinkflation", in which the size of an item such as a packet of chips is reduced but the price is maintained, and "fake discounts", in which prices are raised before reducing them to levels higher than the original price.

At a Woolworths supermarket in Sydney, a 45-year-old shopper told The Sunday Times that her shopping costs have increased dramatically in recent years, but said she was unaware of shrinkflation and other tactics used to boost sales.

Rosa, an office worker, who asked that her surname not be published for privacy reasons, said she was considering taking a second job due to the high cost of living.

"Everything (in the supermarket) has gone up," she said. "It makes things more difficult. I usually look for things that are on special (on discount)."

Yet there is growing evidence that "special" offers at supermarkets may not be as special as they appear.

In March, research by the consumer advocacy group Choice revealed the extent of shrinkflation at Coles and Woolworths.