The ACCC will closely examine the retail margin of eight product groups, including milk, bread rolls and chocolate, as part of the ACCC's work under the supermarkets excessive pricing legislation.
The ACCC's first report under this legislation will be published in early 2027.
In selecting the focus products, the ACCC considered a range of information, including reports from consumers and suppliers; whether the product is considered essential or discretionary; and the prices of the products during the 2024-25 and 2025-26 financial years, as well as margins and sales revenue.
The ACCC is today announcing it will initially focus on the following product categories:
- potatoes
- limes
- chicken, bone-in
- unflavoured fresh milk
- bread rolls
- chocolate (blocks and snack bars)
- coffee
- kitchen sponges and scourers.
"It's important to note that just because a product is on our focus list, it doesn't mean that we currently consider supermarkets are obtaining unreasonable margins on these products. It signals that we think the pricing of the product warrants closer examination," ACCC Deputy Chair Mick Keogh said.
"Our compliance monitoring is not limited to the announced focus products. We will continue to obtain and analyse margin and pricing information for all grocery products available at Coles and Woolworths, alongside reports from consumers and suppliers."
"This work matters to Australian consumers who are acutely aware of price increases in their supermarket shop," Mr Keogh said.
The focus product groups represent more than 1000 items available across Coles and Woolworths supermarkets.
While the ACCC may take enforcement action if appropriate, the initial focus will be on monitoring of compliance with the new laws.
Monitoring is not confined to this first tranche of focus products. Additional focus products subject to closer examination will be announced next year.
The ACCC will publish an initial monitoring report in early 2027, covering focus product prices, costs and margins. This report will draw on data from before the start of the prohibition and will provide a baseline for future compliance monitoring.
Background
On 14 December 2025, the Australian Government announced a supermarkets excessive pricing prohibition. The prohibition was implemented as an amendment to the Food and Grocery Code of Conduct.
The prohibition came into effect on 1 July 2026. It applies to very large supermarket retailers that have an annual revenue of more than $30 billion for the 2025-26 financial year, which currently captures Coles and Woolworths.
The ACCC is responsible for enforcing compliance with the Food and Grocery Code of Conduct, including the excessive pricing prohibition, which requires the ACCC to consider whether the price of a grocery product is significantly excessive when compared to the cost to the retailer to supply it, plus a reasonable margin.
The purpose of the prohibition is to promote workably competitive outcomes in grocery product markets and protect the welfare of consumers by prohibiting excessive pricing by very large supermarket retailers.
Under the prohibition, there is no fixed threshold for what is an excessive price for a grocery product, but the ACCC will consider all relevant circumstances.
The ACCC published the Compliance and enforcement guidelines on the supermarkets excessive pricing prohibition in June 2026. This further details the key requirements introduced by the excessive pricing prohibition, and the ACCC's approach to monitoring, enforcement and reporting in relation to the prohibition.
The ACCC has information on its website about what's allowed when setting prices.
Significant penalties may apply for breaches of the Food and Grocery Code of Conduct.
