Coles Under Fire as Watchdog Signals Price Gouging Lawsuit
Good evening and tonight we’re turning to a story that could reshape how Australia’s biggest supermarkets set their prices.
Coles, along with rival Woolworths, is now firmly in the sights of the national competition watchdog. The Australian Competition and Consumer Commission says it expects to launch legal action for price gouging under new laws coming into force this year. And that first court case could arrive within the next twelve months.
So what’s happening here and why does it matter to shoppers everywhere?
For years, Australians have complained about rising grocery bills. Essentials like bread, meat, milk and fresh produce have climbed steadily, even as inflation pressures have eased in other parts of the economy. Many consumers feel they’re being squeezed at the checkout and that frustration has now reached Canberra.
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The government has introduced new price gouging laws designed to give the ACCC sharper teeth. From July 1, the regulator will be able to step in when price rises appear excessive and unjustified, especially when companies dominate a market and consumers have few alternatives.
ACCC chair Gina Cass-Gottlieb has made it clear the watchdog will be watching supermarket pricing very closely from day one. She’s warned that recent price movements are already raising red flags. The message to Coles and Woolworths is simple. Change your pricing behaviour, or prepare to defend it in court.
This is a big moment. Coles and Woolworths together control the vast majority of Australia’s grocery market. That level of power brings enormous responsibility and regulators argue it also brings the risk of consumers being overcharged without real competition to keep prices in check.
If legal action does go ahead, it would be one of the first major tests of these new laws. The consequences could be significant. Heavy penalties are on the table, but just as important is the precedent it would set. A successful case could force supermarkets to rethink how they price everyday goods, not just now, but long into the future.
For shoppers, the impact could be real. More scrutiny could mean fairer pricing, clearer explanations for price increases and potentially some relief at the checkout. For the supermarket giants, it’s a warning that the era of quietly lifting prices without detailed justification may be coming to an end.
Of course, Coles and Woolworths argue that higher costs across supply chains have played a role, from transport to wages to energy. That debate is likely to play out loudly if and when the matter reaches court.
For now, the countdown is on. New laws begin in July and the watchdog is ready. The next year could prove pivotal for Australia’s supermarket sector and for millions of households watching every dollar they spend.
That’s the story we’ll continue to follow closely.
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