Coles has replaced its 680g gluten-free loaves with 440g versions, leading to a 38% price increase per gram, which has caused dissatisfaction among the gluten-free community.

The ACCC is currently suing both Coles and Woolworths for allegedly misleading customers with fake discounts on a wide range of products, with Woolworths accused of false representations on 266 products and Coles on 245 products.

Both supermarket chains have denied the allegations of price-gouging and misusing their market power.

In response to the rising cost of living, the federal government has allocated $30 million to the ACCC for investigations into supermarket and retail practices.

During a speech on February 20, 2025, ACCC chair Gina Cass-Gottlieb expressed deep concerns about the rising cost of groceries and essential services, highlighting ongoing cost-of-living stress for consumers.

The ACCC is preparing to submit its final report on the supermarket sector to the government by the end of February 2025, which will address competition issues and consumer complaints.

Recent instances of 'shrinkflation' have been noted, with Woolworths selling smaller deodorant sticks at higher prices and Coles reducing the size of gluten-free bread loaves, resulting in increased costs per gram for consumers.

Starting in 2026, a new merger regime will require companies to notify the ACCC of significant mergers, aiming to limit market concentration and promote fair competition.

Cass-Gottlieb noted that market concentration is a growing challenge across various sectors, including aviation and essential services like telecommunications and energy.

In the 2025-2026 period, the ACCC will prioritize promoting competition in essential services and addressing misleading surcharging practices.

The ACCC aims to enhance competition and fair trading through rigorous enforcement and compliance initiatives.

Cass-Gottlieb emphasized that competition is vital for benefiting the economy, household incomes, and overall living standards.