BREAKING: The Australian government is taking decisive action against ‘shrinkflation,’ a practice where companies reduce product sizes while keeping prices unchanged. Starting Monday, Labor will engage with industry and consumer groups to discuss new regulations aimed at ensuring transparency in grocery pricing.
This urgent move follows a comprehensive inquiry by the Australian Competition and Consumer Commission (ACCC), revealing that Australia’s supermarkets are among the most profitable globally. Assistant Minister for Productivity and Competition Andrew Leigh emphasized the growing frustration among Australians who feel cheated by deceptive practices. “Every time I speak to constituents, I’m flooded with examples of where they feel ripped off by retailers,” Leigh stated.
Consumers have voiced concerns about pervasive shrinkflation, from chocolate bars losing squares to toilet paper rolls shrinking from 11 centimeters to 10 centimeters. The ACCC’s inquiry report, released in March 2023, recommended that companies notify customers when they shrink products and made 20 recommendations to enhance competition and consumer experience in supermarkets.
The government plans to implement these recommendations fully, which include more visible unit pricing on shelves to facilitate better consumer choices. Leigh noted, “We’re looking at making it easier to expose brands offering less value for money.”
The consultations will run for three weeks, focusing on potential court-imposed fines for companies that violate these new rules. Leigh highlighted issues with inconsistent unit comparisons, making it challenging for shoppers to make informed decisions. “No one wants to do math during their weekly shop,” he added.
This initiative comes in response to public outcry over price gouging amid a rising cost-of-living crisis. The government has allocated $30 million to enhance monitoring of the retail sector and combat misleading practices. Additionally, funding for the consumer group CHOICE has been expanded to provide shoppers with critical price information.
As the consultations commence, consumers are urged to participate and share their experiences with shrinkflation. “We want feedback on what steps we can take next to crack down on diminishing sizes,” Leigh stated. The government aims to empower Australians with the necessary information to make value-driven purchases at the checkout.
Stay tuned for updates as this crucial initiative unfolds, aimed at safeguarding consumer rights and promoting fair pricing in Australia’s grocery sector.
