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Posted 29/02/2024 10:41am

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Supermarket probe starts,
Consumer habits in view,
ACCC charts course.

In partnership with
Salesforce

ACCC asks consumers for input and releases issues paper for supermarket industry inquiry

The ACCC is asking Australian consumers to share information about how they shop and what they experience through an online survey published today as part of the regulatory watchdog’s supermarkets inquiry.

It comes as the ACCC also publishes an issues paper outlining key topics the supermarkets inquiry will explore. The shout out is for submissions from farmers, wholesalers, retailers, and other interested parties across the supply chain and ecosystem.

The Federal Government announced its plans for a new inquiry into the supermarkets on 25 January. It’s one of six different reviews and inquiries into supermarkets and broader concerns of price gouging and self-regulation effectiveness as the cots-of-living continues to bite. The last ACCC investigation into the grocery sector was 2008.

"We know that consumers and suppliers alike have a range of concerns about Australia’s major supermarkets, and this is their chance to have their say," said ACCC Deputy Chair Mick Keogh.This time, the ACCC will utilise its legal powers to obtain data and documents from the supermarkets. "We will be using our legal powers to compulsorily obtain data and documents from the supermarkets themselves, but consultation with consumers and grocery sector participants is an important first step in our inquiry."

The survey, open until 2 April 2024, will explore factors influencing consumer shopping habits, such as price changes, loyalty programs, and other factors. Consumers are also encouraged to share experiences they found confusing or misleading, such as 'was/now' pricing or 'shrinkflation'.

The ACCC will examine competition between supermarkets and the barriers that new or emerging supermarkets face. It will also investigate how retail competition differs across Australia, particularly in regional and remote areas. A detailed comparison of the prices suppliers receive for their goods and the price consumers pay at the checkout will be conducted, along with an examination of the profits supermarkets earn.

"One of our major focus areas will be the supermarkets’ approach to setting prices, and whether there is evidence to show that a lack of effective retail competition is contributing to higher prices," said Keogh. The ACCC is also interested in issues such as loyalty schemes, discounting practices, the shift to online shopping, and the impact of home-brand products. In relation to grocery supply chains, the ACCC wants to hear from industry participants about competition within supply chains, trading arrangements, margins and price transparency, and if supermarket buyer power is impacting suppliers’ commercial viability.

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