<?xml version="1.0" encoding="ISO-8859-1"?> <docID>332598</docID> <postdate>2024-11-07 13:45:05</postdate> <headline>‘Frustrated, sceptical’ consumers lose trust in grocers</headline> <body><p><img class=" wp-image-332599" src="https://citynews.com.au/wp-content/uploads/2024/11/20240221001905605419-original-1-scaled.jpg" alt="" width="900" height="600" /></p> <caption>Consumer advocates say shoppers have lost trust in the major supermarkets. (Joel Carrett/AAP PHOTOS)</caption> <p class="wire-column__preview__author"><span class="kicker-line">By <b>Jack Gramenz, Kat Wong and Andrew Brown</b> in Canberra</span></p> <p><strong>Consumers have lost trust in supermarkets amid perceptions they have profited from the cost-of-living crisis, advocates have told an inquiry.</strong></p> <p>The Australian Competition and Consumer Commission started public hearings for its inquiry into the supermarket sector on Thursday.</p> <p>Representatives from Woolworths, Coles, Aldi and Metcash - which licenses the IGA brand and others - will appear throughout November.</p> <p>Hearings will examine price-setting practices, retail competition, supply chain concerns and the profit margins of major chains.</p> <p>Many consumers have lost trust in supermarket pricing while suppliers have said they are forced to agree to unfavourable terms, according to the commission's interim report.</p> <p>Choice campaigns director Rosie Thomas told the inquiry public perception had earned Coles and Woolworths the consumer advocacy group's Shonky award for "cashing in during a cost-of-living crisis".</p> <p>"There is this real belief among consumers, they are feeling frustrated and sceptical around the prices," she said.</p> <p>The scepticism was much higher amongst Coles and Woolworths shoppers, with almost two-thirds believing the pair profited by increasing prices, compared with just over a quarter of Aldi shoppers, Ms Thomas added.</p> <p>But Choice did not have the data to establish whether the supermarkets were in fact "cashing in" and only the consumer watchdog had the information-gathering powers required to get the truth, she said.</p> <p>While trust in the supermarkets had plummeted in recent years, Choice chief executive Ashley de Silva noted it fell from a high base after the COVID-19 pandemic, during which they acted swiftly to help consumers.Combined Pensioners and Superannuants Association senior policy officer Billy Pringle said people on fixed incomes were particularly sensitive to sudden price changes.</p> <p>But when they did not see the same cost increases that the supermarkets blamed for upping their prices, scrutiny followed.</p> <p>"Suddenly it starts to feel like the reality of that price increase might come more down to what Woolworths and Coles can get away with," Mr Pringle said.</p> <p>Indigenous Consumer Assistance Network financial counsellor Martina Kingi said remote communities had always faced significantly higher prices and received worse products, when they could get them at all.</p> <p>"Our mob have been dealing with this for a very long time," she said.</p> <p>Community-run stores were trusted more and usually offered better prices.</p> <p>Greater transparency from privately owned stores on why prices were higher, beyond blaming freight charges, would help, Ms Kingi added.</p> <p>"Some of the private stores are there to make a buck ... they're not really hiring locals or anything like that," she said.</p> <p>Assistant Competition Minister Andrew Leigh said a mandatory code of conduct governing the relationship between supermarkets and suppliers would soon replace a "toothless" voluntary code.</p> <p>"The Albanese government will introduce legislation later this month to attach significant penalties for supermarkets that breach the food and grocery code," he said.</p> <p>The ACCC in September sued Coles and Woolworths, claiming the retailers misled customers with illusory discount schemes.</p> <p>Both grocers deny the allegations and say the cases are misconceived.</p> <p>The federal government will provide $30 million in extra funding for the consumer watchdog to continue investigations and enforcement in the supermarket and retail sector.</p> <p>A final report on the inquiry is due to be delivered to the government by February.</p> </body>