Australians Confused by Supermarket Promotional Labels
A new study by Choice, a consumer advocacy group, reveals that Australians are struggling to understand promotional labels used by major supermarkets. These labels, such as "While Stocks Last," "Super Savers," and "Prices Dropped," often fail to reflect genuine discounts, leading to confusion and potentially misleading consumers.
The study surveyed over 1,000 Australians and examined various price tags from Woolworths, Coles, and Aldi. The results showed that one in four respondents found it difficult to determine whether these labels represented actual price reductions.
One example highlighted in the study was a coconut water product at Woolworths. Despite being labeled "Price Dropped," the product had consistently been priced at $4 for almost five years. This practice, according to Choice, is concerning, especially during a cost-of-living crisis when many Australians are trying to save money on groceries.
The study also found that the "While Stocks Last" label at Coles and the "Super Savers" label at Aldi caused confusion among shoppers. In both cases, respondents were unsure whether the products were actually discounted.
Choice argues that the lack of pricing transparency makes it difficult for consumers to make informed purchasing decisions. They are calling on the government to empower the ACCC to collect and publish a database of supermarket prices, allowing consumers to track price changes over time.
Furthermore, Choice is urging the ACCC to take strong enforcement action against misleading pricing practices and implement stricter rules to ensure fair and transparent pricing in supermarkets.
The ACCC has launched an inquiry into the pricing practices of supermarkets and is currently collecting information from relevant parties. The outcome of this inquiry could lead to significant changes in how supermarkets display prices and interact with consumers.