EU Court Highlights Supermarket Pricing Misconduct

Supermarkets in Europe and Australia are under scrutiny for deceptive pricing tactics, particularly 'fake discounts' where retailers inflate prices before advertising reductions that mislead consumers. A recent ruling against Aldi Süd by the EU Court of Justice highlights these practices, which are also prevalent among other major retailers, raising concerns over consumer trust and regulatory compliance. In Australia, the Australian Retailers Association has criticized the CHOICE report for lacking transparency and providing misleading comparisons that do not accurately represent the average grocery basket. Additionally, the ACCC has revealed evidence suggesting that Coles and Woolworths may also be inflating prices to create illusions of discounts, further emphasizing the need for stricter regulations. The situation underscores a growing demand for consumer transparency tools, such as SmartLabel, which provides extensive product information to help consumers make informed choices. Experts argue that immediate implementation of new rules under the Food and Grocery Code of Conduct is essential to restore trust and ensure fair pricing practices in the grocery sector.