Political pressure mounts over ACCC supermarket report as fresh produce sector and consumers seek reform
The Coalition and Greens are renewing calls for Labor to embrace powers to forcibly break up supermarket chains such as Coles and Woolworths, despite the competition watchdog not recommending this in its final review of the sector.
The political row over supermarkets reignited after the Australian Competition and Consumer Commission (ACCC) published its 441-page final report on the grocery sector. The report found that Coles, Woolworths, and Aldi were among the most profitable grocers globally, with rising margins over the past five years despite a national cost-of-living crisis.
The report highlights how major supermarkets have preserved an information advantage and exerted disproportionate bargaining power over suppliers, particularly fresh produce growers. It confirmed widespread concerns about unfair, exploitative, and abusive trading practices within the fresh produce supply chain. More than half of the ACCC's 20 recommendations focus specifically on protecting fresh produce suppliers, including strengthening the Food and Grocery Code of Conduct, improving price transparency, limiting supermarkets' ability to override code provisions, and harmonizing audit and compliance schemes.
Jolyon Burnett, Chair of the National Farmers' Federation (NFF) Horticulture Council, said the report must lead to lasting improvements in trading practices. "The relationship between supermarkets and fresh produce suppliers has been unfair, and too often exploitative," he said. NFF President David Jochinke added that the report independently validated long-standing concerns about market power and sustainability. The government has accepted all recommendations in principle and allocated $2.9 million for grower education on rights and protections under the Code.
Despite this, Shadow Treasurer Angus Taylor called on the government to introduce divestiture powers as a "last resort" to increase supermarket competition. Greens economic justice spokesperson Nick McKim echoed this, stating the ACCC's findings justified stronger regulation to curb price gouging. However, Treasurer Jim Chalmers rejected the idea, arguing that forced store sales could be counterproductive and were not among the ACCC's recommendations.
The ACCC also addressed misleading supermarket pricing tactics. It found that some promotions, including "prices dropped" and "down, down" labels, were applied after prior price hikes, creating confusion for consumers. CHOICE research revealed that one in four shoppers found discount labels unclear. The ACCC recommends clearer pricing, verifiable discounts, a stronger Unit Pricing Code, and notifications for shrinkflation.
CHOICE CEO Ashley de Silva said the findings confirm the sector is highly concentrated. "This is why it's so important that we shine a light on pricing and shrinkflation, regulate promotions, and make it easier for consumers to get value for money," he said.
Woolworths Group responded by acknowledging the ACCC's findings and said it would carefully review the report and its recommendations. The retailer noted that it had already acted on many of the ACCC's interim suggestions, including improving promotional clarity, enhancing price transparency, simplifying in-store ticketing, expanding affordable Own Brand products, and launching digital tools like the Watchlist to notify customers of special offers. Woolworths CEO Amanda Bardwell said the company has worked closely with the ACCC and remains committed to supporting both customers and suppliers, especially during ongoing cost-of-living pressures. She emphasized the company's support for improved transparency in the horticultural sector and reaffirmed Woolworths' backing for a mandatory Food and Grocery Code of Conduct with serious penalties for large grocery businesses.
Coles, in its response, also emphasized its view that the Australian supermarket sector remains competitive while supporting efforts to improve supplier and customer transparency—provided reforms do not increase red tape or operational costs.
Source: National Farmers Federation: Article 1 Article 2
Source: NSW farmers
Source: Ausveg
Source: Woolworths Group
Source: Choice
Source: The Guardian
© NFF 
© NSW Farmers 
© Ausveg
© Woolworths Group