ACCC proposes repairs to enhance supermarket competition and fairness

The Australian Competition and Consumer Committee (ACCC) concluded its investigation in the supermarket, as it issued 20 recommendations to enhance the market competition.

The investigation revealed that Aldi, COOLES and Woolworths occupy the high profitability compared to international counterparts, with a noticeable rise in medium product margins over the five financial years until 2025.

Acccc estimates that Woolworths owns 38 % of the National Broke Grocery Market Market, and the coles contains 29 %, and Aldi represents 9 % and MetCash, which represents the independent supermarkets it provides, 7 %.

Suggested measures include initiatives such as the implementation of more transparent pricing strategies, increased transparency of suppliers and amending current planning and division regulations.

These steps aim to enhance a more competitive scene in the supermarket, benefit consumers and provide suppliers with more fair negotiation conditions.

“During the past 12 months, I heard an ACC from more than 20,000 consumers who responded to wiping our consumers, received more than 100 general offers, carried eight round table materials for suppliers, reviewed tens of thousands of internal documents, conducted special sessions and ten days of public meetings sessions, and analyzes of the expected environment points.” Twenty recommendations submitted in the final report to inquire the supermarkets in ACCC:

It is necessary for governments to explore support for locally owned commercial shops in areas with limited options, especially those that are remotely, while ensuring proper control.

It should be mandatory for supermarkets to detect their pricing data.

A legislative procedure is needed to address issues related to urban planning and regulating land use.

Supermarkets should meet the baseline requirements for exchanging information about promotional discounts, as well as keeping records.

ACCC supports the initiative to consult by the Australian government regarding amendments to the unit pricing law.

There must be a commitment to supermarkets to alert consumers when there is a decrease in the size of the product that negatively affects them.

COOLES and Woolworths need to provide members of the loyalty program periodically with summaries for their data practices.

Loyalty plans should be evaluated after three years.

ACCC advocates to improve operations to deal with consumer complaints in isolated areas.

Supermarkets must adhere to the basic guarantees shown in the food and grocery law without exception.

Unification is needed in accreditation and auditing criteria.