Australian Supermarkets' Per-Item Pricing Sparks Consumer Watchdog Concern
The head of Australia's consumer regulator has expressed significant concern over the increasing trend of major supermarkets charging for fresh produce by item rather than by weight. This practice has led to widespread confusion among shoppers and substantial price discrepancies, with many customers unknowingly paying more for smaller fruits and vegetables.
Price Discrepancies and Consumer Confusion
Recent reports have highlighted several examples where supermarkets like Woolworths, Coles, and Aldi have implemented per-item pricing. In one Woolworths store, small "lunchbox" bananas were sold in bunches of five at a fixed price per bunch, positioned next to larger bananas priced per kilogram. On a per-kilogram basis, the smaller bananas were double the price, a fact not readily apparent to most customers unless they performed calculations in the shopping aisle.
Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission (ACCC), emphasised that grocery retailers should display a consistent unit of measurement to enable fair price comparisons. 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 added that ensuring transparent and truthful price claims is a top priority for the regulator, given the significant impact of grocery costs on household budgets.
Supermarket Practices and Regulatory Scrutiny
Woolworths, Coles, and Aldi have all expanded their use of per-item pricing for produce, often without displaying the equivalent weight price. Notably, Aldi's Australian stores do not provide scales for customers to verify weights. Online practices vary, with Woolworths using fixed prices for some items regardless of weight, while Coles and Aldi adjust prices based on actual weight.
Supermarkets argue that per-item pricing simplifies budgeting and selection for customers. However, this has led to significant price discrepancies, as larger items like cauliflowers, broccoli, capsicums, mangoes, and avocados are quickly snapped up, leaving smaller, less cost-effective options for subsequent shoppers. Online shoppers using delivery services have no control over the size of items selected, exacerbating the issue.
Calls for Reform and Transparency
Under current regulations, supermarkets can price produce per item or per kilogram, whether packaged or loose. While the Albanese government has pledged to strengthen aspects of the unit pricing code, no specific reforms to this practice have been announced. The ACCC is separately suing Coles and Woolworths over allegations of "illusory" discounts on everyday products, though Cass-Gottlieb declined to comment on ongoing court proceedings.
Consumer advocate Ian Jarratt, who pioneered unit pricing in Australia, advocates for all produce to be priced and displayed per weight. He argued, "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 is that there is not sufficient transparency. Why should you be penalised because someone else picked up the big cauliflowers?" This sentiment underscores growing calls for greater clarity and fairness in supermarket pricing practices.
