Supermarket fines in Australia: a timeline
From Coles $10M settlement to Woolworths hearings and the new price gouging ban. A factual timeline of supermarket enforcement.
Supermarket enforcement in Australia has intensified dramatically. From the Coles settlement to ongoing Woolworths proceedings and a new price gouging law taking effect in July 2026, major retailers face unprecedented scrutiny and financial exposure. This timeline covers the key enforcement actions, regulatory shifts, and what they mean for Australian shoppers.
The scale of enforcement
- Coles: $10M Federal Court settlement (December 2024)
- Woolworths: 266 products under investigation, hearing commenced April 2026
- Price gouging law: Max penalty 10% of annual turnover (Woolworths ~$3.6B, Coles ~$2.9B based on FY2025 revenue)
- Mandatory Food and Grocery Code: Enforceable since 2025
December 2024: Coles $10M settlement
The Federal Court ordered Coles to pay $10 million to settle Australian Competition and Consumer Commission (ACCC) proceedings regarding illusory discount pricing.
The ACCC alleged that Coles displayed prices as "discounted" on 245 products when those products had been sold at the lower price for extended periods. The company did not admit to misleading conduct. Justice Kelly, in the Federal Court judgment, noted the conduct was concerning as it affected consumer decision-making on household essentials.
The settlement included a $700,000 pecuniary penalty and $9.3 million in consumer benefits, comprising a customer refund scheme, improved price transparency systems, and compliance programs.
April 2026: Woolworths hearing commences
The Federal Court hearing in Woolworths' case began in April 2026. The ACCC alleges that Woolworths engaged in similar illusory discount conduct across 266 products between June 2022 and June 2023.
Like the Coles case, the allegations centre on products displayed as discounted when they had been sold at the lower price for sustained periods, potentially misleading consumers about the value of the discount.
The outcome of this proceeding is expected to have significant implications for retail pricing practices across the sector.
July 1, 2026: Price gouging ban takes effect
A new prohibition on price gouging comes into force on 1 July 2026. This makes it unlawful for businesses to charge excessive prices for goods or services during or immediately after a declared disaster.
The maximum penalty is 10% of annual turnover. For Woolworths, based on FY2025 group revenue of approximately $37.8 billion, this equates to roughly $3.6 billion. For Coles, based on FY2025 group earnings of approximately $29.4 billion, this is approximately $2.9 billion.
While initially targeted at disaster-related scenarios, this law reflects broader regulatory momentum toward stricter price conduct enforcement. The ACCC has been consulting on a potential permanent price gouging regime separate from this temporary provision.
2025 and beyond: Mandatory Food and Grocery Code
The Food and Grocery Code of Conduct became mandatory in 2025, applying to retailers with annual grocery turnover of $10 million or more.
The Code requires major supermarket chains to act fairly in their dealings with suppliers, communicate clearly about promotions and discounts, and resolve disputes through formal processes. Breaches can be referred to the ACCC for investigation.
This represents a significant shift from the voluntary code model that preceded it, bringing regulatory teeth to conduct standards across the supply chain.
Enforcement pattern: What's driving action
The ACCC's recent enforcement activity reflects three key drivers:
- Consumer focus: The illusory discount cases target conduct directly affecting shoppers' purchasing decisions on essential goods like groceries and household items.
- Evidence availability: Digital pricing systems, receipt data, and transaction records make historical pricing conduct easier to investigate and prove.
- Policy priority: Grocery competition has become a federal government policy focus, with multiple inquiries and reforms in progress. The ACCC has secured additional resources to investigate conduct in this sector.
What this means for shoppers
Increasing enforcement and stricter penalties create incentives for retailers to ensure their pricing practices are transparent and defensible.
For Australian families, this underscores the importance of comparison shopping. Use Pinch to track prices across multiple retailers and across time. You can identify when a discount is genuine versus when a price has been artificially inflated before being reduced.
The ability to see historical price data helps you understand whether an offer represents true savings or relies on short-term price inflation to create the appearance of value.
Sources
- Federal Court of Australia, Coles Group Limited v Australian Competition and Consumer Commission (2024)
- ACCC enforcement notices and factual information statements
- Competition and Consumer (Price Gouging) Regulations 2024
- Food and Grocery Code of Conduct (mandatory version, 2025)
Track prices before you shop
Pinch shows you 52 weeks of price history across Coles, Woolworths, ALDI, and Harris Farm. Know when to buy, know when to skip.
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