Australian Supermarkets' Per-Item Pricing Sparks Consumer Watchdog Concern
The head of Australia's consumer regulator has expressed significant alarm over the increasing trend of major supermarkets charging for fresh produce on a per-item basis rather than by weight. This practice has resulted in widespread confusion among shoppers and substantial price discrepancies, leaving many customers feeling short-changed and frustrated.
Price Discrepancies and Consumer Confusion
Recent investigations have uncovered numerous examples where supermarkets like Woolworths, Coles, and Aldi have implemented per-item pricing for fruit and vegetables. In one notable instance at a Woolworths store, small "lunchbox" bananas were sold in bunches of five with a fixed price per bunch, positioned next to larger bananas priced per kilogram. On a per-kilogram basis, the smaller bananas were effectively double the cost, a fact that would not be immediately apparent to most customers without performing calculations in the shopping aisle.
Gina Cass-Gottlieb, the chair of the Australian Competition and Consumer Commission (ACCC), emphasized that grocery retailers must display a consistent unit of measurement to enable shoppers to compare prices both within a single supermarket and across different stores. She stated, "It is of concern. The review and the strengthening of the unit pricing code is the right way to address this." Cass-Gottlieb highlighted that ensuring price claims are transparent and truthful is a top priority for the regulator, given the significant impact of grocery costs on household budgets.
Impact on Shoppers and Market Practices
The rise of per-item charging has led to dramatic price variations, as customers tend to select larger items such as cauliflowers, broccoli, capsicums, mangoes, and avocados first, leaving smaller produce for subsequent shoppers. This creates an unfair situation where those who arrive later may pay the same price for inferior-sized items. Online shoppers using delivery services are particularly affected, as they have no control over the size of produce selected for them.
Supermarkets defend the practice by arguing that per-item pricing simplifies budgeting and allows customers to easily choose the number of items they need. However, consumer advocates like Ian Jarratt, who pioneered unit pricing in Australia, argue that all produce should be priced and displayed per weight. Jarratt explained, "If they want to give an approximate item price they can do that, but it should be charged on a per kilo basis. The base problem with what supermarkets are doing is that there is not sufficient transparency. Why should you be penalised because someone else picked up the big cauliflowers?"
Regulatory and Industry Response
Currently, major supermarkets are permitted to price fruit and vegetables per item or per kilogram, whether packaged or loose. While the Albanese government has committed to strengthening aspects of the unit pricing code, no specific reforms targeting this practice have been announced. In a separate legal action, the ACCC is suing Coles and Woolworths over allegations of offering "illusory" discounts on everyday products, though Cass-Gottlieb declined to comment on these ongoing court proceedings.
In stores, Woolworths, Coles, and Aldi have all expanded their use of per-item produce pricing, often without displaying the weight price alongside it. Notably, Aldi's Australian stores do not provide scales for customers. Online practices vary, with Woolworths using fixed prices for some produce regardless of weight, while Coles and Aldi adjust the final price based on actual weight. This inconsistency further complicates the shopping experience and undermines consumer trust.
As inflation reignites and grocery costs rise sharply, the ACCC's scrutiny of supermarket pricing practices underscores the critical need for greater transparency and fairness in the retail sector. Consumers are urged to stay informed and advocate for clearer pricing standards to protect their wallets and ensure equitable access to fresh produce.
