Competition chiefs and consumer regulators remain “highly concerned” about pricing practices at major Australian supermarkets, even though they have been subject to litigation and strict public scrutiny.
Gina Cass-Gottlieb, chairman of the Australian Competition and Consumer Council, also said regulations may need to be strengthened to combat complaints filed by operators and suppliers, which were made by Coles and Woolworths Leading a highly centralized department supplier.
The ACCC will hand over its final report to the government by the end of February after raising incentives that fear that the "oligarch" market might limit incentives to competition.
It sued Coles and Woolworths individually for allegations that they misled shoppers, misleading shoppers by offering "unreal" discounts to hundreds of ordinary supermarket products.
These supermarkets are defending legal claims and have been denied allegations that they abuse their market power by pricing consumers and lowering prices for agricultural suppliers.
Cass-Gottlieb answered questions about whether supermarkets have improved their practices, "We continue to be very worried about it."
“The best answer to the interim today is that we continue to draw attention and we will soon provide a very extensive report to the government.
“In addition, there is another question, whether the current regulations are far enough.”
Guardian Australia recently detailed Woolworths’ criticism at the ACCC public hearing months after Woolworths sold smaller Brut deodorant sticks at the unit price of the old product More than twice as much.
Bryce New, New South Wales, offers another example of a “shrink”, in which case the cost per gram of bread rises significantly after Coles reduces its size.
New said he shops almost exclusively in Coles, and he said the supermarket stopped selling its 680g "traditional white" gluten-free bread for $7 in December.
He said bread is the most affordable gluten-free option and he was “very saddened by the loss of the gluten-free and celiac community”.
New says Coles has relaunched 440 grams of bread for $6.25, meaning a 38% increase per gram.
A Coles spokesman said the new bread changes lighter due to “innovative technology” and “new recipes” and “a superior quality for our customers.”
"The new formula is less dense and more closely mimics dough preparations similar to gluten-based bread," the spokesperson said.
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Woolworths said it has made similar changes to its own gluten-free bread. A spokesman said the company has switched to suppliers and "using new recipes to deliver lighter, dense breads that are closer to the consistency of traditional wheat breads."
The changes are based on customer feedback, they said.
Cass-Gottlieb's criticism of the supermarket was conducted ahead of a speech delivered on Thursday, detailing ACCC's compliance and enforcement priorities.
The regulator will tell the Australian Economic Development Council that it will focus on sectors and behaviors that have a significant impact on the cost of living.
"Market concentration is a growing challenge for the entire Australian economy - in supermarkets and retail, aviation and many of our essential services," said Cass-Gottlieb.
Last year, the federal government allocated $30 million to competition regulators to conduct specialized investigations and law enforcement activities in supermarkets and the wider retail sector.
The funds are provided during the rapidly rising cost of living, which in particular affects low-income earners, given that most of its budget is basic projects.
The ACCC welcomes the new merger regime that came into effect in early 2026, which will prevent companies from buying competitors in a limited review.
Starting next year, companies will be required to notify regulators of a certain scale of merger in competition laws aimed at reducing unfair market concentration.