Australia’s competition regulator will examine retail margins across eight grocery product groups as the first focused test of the country’s new supermarket excessive-pricing prohibition.
The Australian Competition and Consumer Commission said on 13 November that it had selected potatoes, limes, bone-in chicken, unflavoured fresh milk, bread rolls, chocolate blocks and snack bars, coffee, and kitchen sponges and scourers. Together, the groups cover more than 1,000 products sold by Coles and Woolworths.
The selection does not amount to a finding that either chain is charging an unlawful price. The ACCC said it chose the products after considering consumer and supplier reports, whether an item is essential or discretionary, and pricing, margin and revenue information for the 2024–25 and 2025–26 financial years.
The prohibition took effect on 1 July 2026 as part of the Food and Grocery Code of Conduct. It applies to very large supermarket retailers with annual revenue above A$30 billion for 2025–26, a threshold that currently captures Coles and Woolworths. There is no fixed numerical test. The regulator must assess whether a grocery price is significantly excessive when compared with the retailer’s supply cost plus a reasonable margin, taking all relevant circumstances into account.
The initial work is a monitoring exercise, although breaches can attract significant penalties and the ACCC may take enforcement action where the evidence supports it. The agency will continue analysing pricing and margin data for other groceries and plans to name additional focus products next year.
A first public report is expected in early 2027. It will include pre-commencement data to provide a baseline for later compliance comparisons.
The product list and statutory background are set out in the ACCC’s official notice.
