Four in Five Australians Believe the Supermarkets Are Ripping Them Off. Trust Has Become a Pricing Issue.
A Finder survey shows 79% of Australians believe supermarkets are price gouging. New laws start July 1 and cover only Coles and Woolworths. The brand damage is already happening regardless of the legal outcome.
When 79% of your customer base thinks you are ripping them off, the legal defence does not matter. The brand is already paying the price.
A Finder survey has found 79% of Australians believe they are being ripped off at the supermarket checkout. Of those, 72% think Coles and Woolworths have been price gouging for years and are still doing it now. New price-gouging laws come into force on July 1.
The laws only apply to retailers earning more than $30 billion a year in revenue. That captures Coles and Woolworths. Aldi, IGA and the independents fall below the threshold and are exempt. The ACCC, after a 12-month inquiry, found no evidence of excessive pricing. The consumer body's data and the consumer's lived experience are no longer in the same conversation.
That gap is the real story. Whether or not the supermarkets are gouging, four in five shoppers believe they are. Consumer perception is the brand. The legal finding is a footnote.
A Finder survey found 79% of Australians believe supermarkets are price gouging, with 72% saying it has been continuous
For marketers in adjacent categories, this is a permission slip and a warning. The permission slip is to position transparency, fair pricing and value as primary brand messages. The warning is that 'value' claims are now subject to instant social-media fact-check.
Why it matters
Trust collapses faster than it builds. Once a clear majority believes you are exploiting them, the conversation moves from price to ethics. Coles' Down Down campaign survived years of consumer scepticism. The current cycle is different because the federal court has now ruled against Coles on the Down Down campaign itself. The legal and reputational risks are no longer separate.
Aldi quietly benefits. The brand has not needed to defend itself in this cycle. Its market share gain has accelerated in recent quarters. Independent grocers, Costco, Harris Farm and the FMCG direct-to-consumer brands also benefit.
For brands selling FMCG into Coles and Woolworths, the implication is harder. The bigger the duopoly's reputation problem, the more pressure they will put on suppliers to fund discounts. The bill ends up with the brand, not the retailer.
What to do about it
Audit your trade spend with Coles and Woolworths. The price-pass-through pressure will increase in the second half of 2026.
If you are an FMCG brand, build direct-to-consumer revenue. Even a small DTC channel gives you pricing power.
If you are a smaller retailer or independent, the next 12 months are the best brand-building window you will get. Lean into the trust gap.
If you are an agency working with the majors, the brief is going to ask for transparency campaigns. The hard part is making them credible.
Track perception week-by-week. The shifts in this cycle are faster than the quarterly brand tracker can catch.
The law starts July 1. The brand damage already happened.