{"id":274579,"date":"2025-12-15T13:45:35","date_gmt":"2025-12-15T02:45:35","guid":{"rendered":"https:\/\/www.russh.com\/?p=274579"},"modified":"2025-12-15T13:39:51","modified_gmt":"2025-12-15T02:39:51","slug":"what-is-the-price-gouging-ban","status":"publish","type":"post","link":"https:\/\/www.russh.com\/what-is-the-price-gouging-ban\/","title":{"rendered":"What is a price gouging ban and how will it impact shoppers?"},"content":{"rendered":"

With grocery prices still straining household budgets in Australia<\/a>, the federal government has moved to crack down on price gouging by major supermarkets. New laws targeting retail giants like Coles and Woolworths aim to curb excessive pricing, reshape competition, and deliver fairer outcomes for shoppers at the checkout.<\/p>\n

Here’s how the new price gouging ban will impact shoppers and retailers alike.<\/p>\n

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What is a price gouging ban?<\/h2>\n

Put simply, the new price gouging regulations<\/a> announced by the government will make it illegal for very large retailers like Woolworths and Coles to be able to charge excessive prices for goods when compared to the cost of the supply plus a reasonable margin.<\/p>\n

The new laws have been implemented off the back of the ACCC\u2019s supermarket inquiry earlier this year, which found that Coles and Woolworths dominate Australia\u2019s grocery market in a way that dulls genuine price competition. While the regulator could not conclusively prove illegal price gouging during the pandemic and cost-of-living crisis, it did find that both supermarkets maintained or increased their profit margins as prices rose, making them among the most profitable globally. In essence, the inquiry suggests that high grocery prices are not just the result of higher costs, but also of a market where limited competition allows the major players to protect their profits, leaving shoppers with few real alternatives at the checkout.<\/p>\n

The intention of the ban is to hopefully lower grocery bills for all Australians, resulting in a fairer trip to the grocery store.<\/p>\n

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How will this be enforced?<\/h2>\n

The Australian Competition and Consumer Commission (ACCC) will be responsible for enforcing the new regime, which includes issuing fines and penalties to retailers. If Coles or Woolworths break the new price-gouging laws, they could be fined at least $10 million, and possibly much more.<\/p>\n

The fine will be whichever is highest out of:<\/p>\n