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Australia Bans Supermarket Price Gouging
13 Dec, 2025
Summary
- New law prohibits 'very large' grocery chains from charging excessive prices.
- Penalties include fines up to A$10 million per violation.
- Coles states profit is A$2.43 per A$100 spent, warns of rising costs.
Australia is set to ban supermarket price gouging starting July 1, enacting a new law designed to shield consumers from excessive grocery costs. This legislation will make it illegal for major supermarket chains to charge prices deemed unreasonable relative to their supply costs and a fair profit margin.
Violators face significant penalties, including fines of up to A$10 million or three times the illicit profit, aiming to strengthen competition and transparency in the sector. The government is also boosting funding for the competition regulator and considering reforms to unit pricing and 'shrinkflation'.
Major retailers like Coles and Woolworths have expressed concerns, with Coles noting rising input costs and warning that regulation could increase prices. Woolworths, however, pointed to declining average prices and questioned the law's focus on Australian-owned companies.
