Australia Bans Supermarket Price Gouging in 2026

The Australian government has announced new laws to ban price gouging by the country's largest supermarkets, targeting chains like Coles and Woolworths with hefty fines starting July 1, 2026. The measures, unveiled by Treasurer Jim Chalmers on Sunday, amend the Food and Grocery Code to prohibit very large retailers from charging prices deemed excessive relative to the cost of supply plus a reasonable margin.

Under the updated code, the Australian Competition and Consumer Commission will enforce the rules with an additional $30 million in funding. Breaches could result in penalties of up to $10 million, three times the benefit gained from the violation, or 10 percent of the company's annual turnover if the benefit cannot be calculated. The changes aim to address concerns over grocery pricing amid ongoing cost-of-living pressures, building on a 2024 ACCC inquiry into supermarket practices.

That inquiry, prompted by accusations that major chains failed to pass on cost savings to consumers during the pandemic, found Coles and Woolworths accounted for two-thirds of national grocery sales and ranked among the world's most profitable supermarkets. While it uncovered no conclusive...