Australia's major supermarkets will face a Senate inquiry into whether customers are being subjected to 'price gouging' during the cost of living crisis.
Many families have succumbed to the pressure of successive interest rate increases this year, which have seen mortgage costs rise, rents rise and weekly budgets tighten.
The select Senate inquiry will scrutinize the impact of market concentration on food prices and the pattern of pricing strategies of the supermarket 'duopoly' – Coles and Woolworths.
It will also assess the increase in prices of essential items, the validity of discounts offered and the inflation of profits during economic downturns.
The inquiry is expected to be launched next week as Parliament meets for the final time this year after the Greens secured Labour's support.
Australia's major supermarkets will face a Senate inquiry into whether customers are being subjected to 'price gouging' during the cost of living crisis. A woman is pictured carrying groceries in Woolworths bags
The first hearings are expected to take place in early 2024.
“Coles and Woolworths are making billions in profit from price rises amid a cost of living crisis,” said Greens Economic Justice spokesman Senator Nick McKim.
'The large supermarkets have had too much market power for too long. This allows them to dictate prices and terms that hit people hard.
'It's time to break the duopoly.'
The investigation will examine the pricing practices between the two major supermarket chains, the large price increases on essential items, as well as the prevalence of opportunistic pricing and markups.
The contribution of private label products to the concentration of corporate power, rising corporate profits and the use of automation to drive cost savings among consumers and employees will also be part of the study.
Mr McKim called on supermarket CEOs to 'justify their decisions' at the public hearing, saying this would be a 'critical step' towards dismantling market concentration.
“We will find a way to dismantle their power and bring down food prices,” he said.
“It's about Australians being able to afford to eat without being exploited and suppliers being treated fairly.”
A Woolworths spokesperson said the chain is “committed to providing value to our customers while working with our suppliers to manage inflationary pressures across the economy.”
The leaders of Coles and Woolworths will be questioned during a Senate inquiry into price gouging. A Coles outlet is pictured
“We know Australians are feeling the pressure of the cost of living and we are working to provide relief from their weekly grocery shop,” he said.
“As we see inflation slow, we will continue to focus on delivering savings to our customers.”
A Coles spokesperson said the supermarket believes 'all Australians should be able to put quality food on the table for their families, at a good price.”
They said having a “profitable business” means it can continue to serve Australians and employ its team of 120,000 people.
Greens Economic Justice spokesperson Senator Nick McKim (pictured) said: 'Coles and Woolworths make billions in profit from price rises in a cost of living crisis'