We are excited to share that the Federal Government has recently concluded a consultation process focused on supermarket unit pricing. However, it is a topic primarily of interest to consumers. Still, the outcomes of this review could have a significant impact on businesses supplying products to the grocery sector.
Beginning on 1 September 2025, the Treasury initiated a consultation aimed at fortifying the Retail Grocery Industry (Unit Pricing) Code of Conduct. The submission window closed shortly thereafter on 19 September 2025, offering stakeholders a brief but vital opportunity to voice their perspectives.
A Brief Overview
Unit pricing enables shoppers to conveniently compare costs per standard measure (such as $/100g or $/litre) across various package sizes and brands. Since 2009, supermarkets have been required to display this information, enabling customers to identify the best value products. While the costs of compliance have been relatively modest and penalties minimal, the Government’s current review suggests that more stringent regulations may soon be implemented.
Why This Review is Timely
The recent inquiry conducted by the ACCC into supermarkets has highlighted that, while unit pricing is beneficial, there are still critical gaps that need to be addressed. A significant concern highlighted is “shrinkflation,” a practice wherein pack sizes are reduced while prices remain static or even increase. In light of ongoing cost-of-living challenges, the Government is prioritising more transparent and fairer pricing structures to help restore consumer trust in the marketplace.
Potential Changes Ahead
The consultation paper outlined several proposals that could reshape the retail landscape:
- Shrinkflation Alerts: Supermarkets may be required to notify consumers when the size of a product is reduced without a corresponding decrease in price.
- Enhanced Displays: Unit prices could be made larger and more visible, both in-store and online.
- Expanded Scope: The regulations may extend beyond major supermarkets to include smaller retailers and online sellers.
- Standardised Measurements: Efforts to eliminate confusing comparisons, such as “per roll” versus “per sheet,” would be standardised.
- Civil Penalties: The introduction of fines for non-compliance might be established.
The Commercial Implications
For suppliers, there may be heightened scrutiny regarding packaging decisions. At the same time, retailers could face costs associated with updating shelf labels, software, or e-commerce systems. However, with change comes opportunity; businesses that embrace transparency stand to cultivate consumer loyalty and differentiate themselves in a competitive market.
Next Steps for Your Business
With the consultation period now concluded, the Treasury will review the submissions received, and the Government is expected to announce its response later this year. Businesses within the food, grocery, and household goods sectors must remain vigilant, as the final regulations could substantially influence pricing, packaging, and compliance obligations across the industry.
At Cuthberts, we are committed to helping you model potential compliance costs, assess financial impacts, and prepare for upcoming regulatory changes. Please feel free to discuss how this review may affect your business.