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Australia’s Coles and Woolworths oppose new 2025 rules capping grocery markups to ease cost-of-living pressures.
Australia’s major supermarkets, Coles and Woolworths, are opposing new government rules set to take effect in July 2025 that prohibit charging prices significantly above supply costs plus a reasonable margin.
The updated Food and Grocery Code of Conduct aims to ease cost-of-living pressures, with penalties of up to $10 million per breach.
Coles says it makes only $2.43 profit per $100 in sales, citing rising energy, freight, labor, and insurance costs.
Woolworths warns the law creates an uneven playing field by targeting only two Australian-owned chains while exempting foreign-owned retailers.
The Australian Competition and Consumer Commission previously found Coles and Woolworths have significant market power and high profits, with grocery prices rising faster than wages between 2022 and 2023.
The government maintains the reforms are necessary to ensure fair pricing and strengthen enforcement, while the Business Council of Australia urges policymakers to focus on supply chain costs instead.
Coles y Woolworths de Australia se oponen a las nuevas reglas de 2025 que limitan los márgenes de los supermercados para aliviar las presiones del costo de vida.