A new report highlights how supermarkets like Coles and Woolworths use deceptive pricing tactics and product placement to mislead consumers. The ACCC chair criticized 'illusory' savings, while the Consumer Federation of Australia pointed to misleading discounts and non-compliant unit price display.
for a short period before placing them in “Prices Dropped” or “Down Down” promotions. The Australian Competition and Consumer Commission’s chair, Gina Cass-Gottlieb, branded such savings “illusory”.The chair at the Consumer Federation of Australia, Gareth Downing, said a range of such retailer tactics make it difficult for shoppers to accurately and concisely compare prices.Downing pointed to the example of a “seasonal discount” on items whose pricing remains the same year-round.
“It’s very hard to compare milk with other milk if you have a discount sticker over the top of the label and the unit price is in a size four font,” he said.that supermarket food prices must be fair and transparent – and should not use their power and size to manipulate prices.By subtly reducing the size of a box of cereal while increasing its price, food manufacturers and supermarkets – which ultimately set prices – have resulted in price hikes of up to 82.1% for consumers.
Impulse purchases – usually junk foods – line checkout queues. It’s a psychological tactic that leaves shoppers “guilt-free” to opt for higher-cost “treats” after picking up fruit, vegetables and staples, according to the watchdog.Supermarkets are adjusting to the speedy shopper, grouping products together to help solve a problem, Choice has reported.
Among products suggested for a Mexican dinner, for example, is usually a premium product with a large margin. The shopper saves time, but spends more than they otherwise might have.Brands pay for prime position at aisle ends, known as “end caps”. There, shoppers, who generally skirt the supermarket rather than venture down every aisle, are targeted by their displays,Encouraging customers to save money by buying several of one item when they only need one – or none at all – is an enduring tactic.
“Because supermarkets don’t publish historical pricing information, it’s impossible for people to know if the price was actually cheaper a week ago”,Green means fresh – and red and yellow signal a bargain, retail experts have told Choice. It’s no surprise, then, that Chemist Warehouse – which promotes itself as a destination for cheap toiletries and medicines – is a sea of red and yellow, while Coles’ “Down Down” deals are also emblazoned with red and yellow.
Consumer Rights Supermarkets Pricing Deception Consumer Tactics Product Placement
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