Read on the GuardianConsumer Watchdog Raises Alarm Over Supermarket Per-Item Pricing Practices
The head of Australia's consumer regulator, Gina Cass-Gottlieb, has expressed serious concern about the growing trend of major supermarkets charging for fresh produce by item rather than by weight. This practice creates significant price discrepancies and leaves shoppers confused and potentially shortchanged. The Australian Competition and Consumer Commission (ACCC) is prioritizing transparent pricing claims as part of its enforcement agenda, particularly as grocery costs contribute significantly to household budgets during a period of reigniting inflation.
The Australian Competition and Consumer Commission (ACCC) has identified a concerning trend in supermarket pricing that threatens consumer transparency and fair value. ACCC Chair Gina Cass-Gottlieb has publicly expressed alarm about the growing practice of major grocery retailers charging for fresh produce by item rather than by weight, a shift that creates confusion and significant price discrepancies for shoppers. This development comes during a period of reigniting inflation, where grocery costs represent a substantial portion of household budgets, making transparent pricing more critical than ever.
The Problem with Per-Item Pricing
The core issue lies in the lack of consistent unit measurement, which prevents customers from making accurate price comparisons. When supermarkets like Woolworths, Coles, and Aldi price items per piece—such as charging for a cauliflower or bunch of bananas as a fixed price—shoppers cannot easily determine value for money. As reported by Guardian Australia, this has led to situations where small "lunchbox" bananas sold in bunches of five were double the price per kilogram compared to larger bananas sold by weight, a fact not readily apparent without calculations in the shopping aisle.
Regulatory Response and Priorities
Cass-Gottlieb has made it clear that ensuring price claims are "clear and truthful" is a main priority for the ACCC. The regulator believes the review and strengthening of the unit pricing code is the appropriate mechanism to address this transparency failure. The chair emphasized that grocery retailers are a huge part of the economy and household budgets, making honest pricing practices essential. This concern is amplified by the ACCC's separate legal action against Coles and Woolworths over allegations of offering "illusory" discounts on everyday products, though Cass-Gottlieb could not comment on those ongoing federal court proceedings.
Industry Practices and Consumer Impact
Major supermarkets have expanded their use of per-item pricing, often without displaying the equivalent weight price nearby. Aldi's Australian stores do not provide scales for customers. Online practices vary, with Woolworths sometimes using fixed prices regardless of weight, while Coles and Aldi may adjust the final online price based on actual weight. Supermarkets argue that per-item pricing simplifies budgeting, but the consequence is a system where shoppers who receive smaller produce items pay the same price as those who select larger ones, creating inherent unfairness. Consumer advocate Ian Jarratt argues all produce should be priced and displayed per weight to ensure sufficient transparency, stating, "Why should you be penalised because someone else picked up the big cauliflowers?"
The Path Forward for Consumer Protection
The Albanese government has indicated it will strengthen aspects of the unit pricing code but has not yet announced specific reforms to curb per-item pricing. The ACCC's spotlight on this issue signals increased regulatory scrutiny on supermarket practices. For consumers, the current environment requires heightened vigilance. Understanding that a fixed price per item does not equate to consistent value is crucial. As grocery inflation persists, regulatory pressure for transparent, comparable pricing will likely intensify to protect household budgets from opaque practices that obscure true costs.
