Australia’s two largest supermarket chains will be subject to financial penalties if they overcharge shoppers under new “price‑gouging” regulations that take effect on 1 July.
The federal law targets “very large” retailers with annual revenue exceeding A$30 billion, which currently applies only to Coles and Woolworths.
For the 2025 financial year, Woolworths reported group sales of A$69.1 billion, while Coles posted A$44.3 billion.
The Australian Competition and Consumer Commission (ACCC) will enforce the new rules, which were announced in December.
For each breach, the maximum fine will be the greater of $10 million, three times the benefit gained, or 10 % of the retailer’s annual turnover.
The legislation does not prescribe a fixed price‑increase limit for groceries. Instead, the ACCC will assess pricing against “relevant circumstances,” such as supply costs, to determine a reasonable margin and whether a price is excessive.
Enforcement will focus on a select group of products, chosen based on consumer and supplier complaints and data supplied by the supermarkets on prices, margins and sales.
“We will concentrate on items where excessive pricing could cause the greatest harm to shoppers,” said Catriona Lowe, acting chair of the ACCC.
The ACCC intends to publish its initial list of focus products over the coming months and will provide regular updates on compliance monitoring.
The new law arrives amid heightened scrutiny of pricing practices in Australia’s grocery sector. In May, a federal court ruled that Coles had made false or misleading claims about discounts in its “Down Down” promotion, exposing the retailer to penalties.
Woolworths, the country’s largest supermarket chain, is also facing ACCC court action over its “Prices Dropped” promotion.
