MARK GIBSON:
Well, you've wanted to talk about shrinkflation this morning. It's been a bit of a hot topic, and I know this has been around for ages, but the federal Government is stepping up its campaign against the pricing tactics of the major supermarkets. They're announcing a crackdown this morning on shrinkflation. And, you know, that's where the prices stay the same, but the size of the product gets smaller. I've read a bunch of your messages this morning. A couple more that just came through during the news. Jaffas – there's been a reduction in their size for sure. This one says, look at the size of Quality Street chocolates, the tins in the 1970s. Then look at today's tin size. It must be less than half the size and 5 times the price. See, I told you it had you talking. The Prime Minister says they're planning changes to the Unit Pricing Code, including making it easier for shoppers to see the prices. Now, Stephen Jones is the federal Assistant Treasurer. Good morning.
STEPHEN JONES:
Good morning. Good to be with you.
GIBSON:
Now, the Prime Minister says it's a crackdown on dodgy supermarket practices. What exactly are you planning to do here?
JONES:
We want to ensure that Australians aren’t being ripped off and they're not being fooled and they're not being subject to dodgy practices. So, shrinkflation we've been talking about, that's when the package gets smaller but the price gets bigger. Nothing sacred, everything from hot cross buns to cleaning products have been subject to it. And in some instances, we've seen prices go up 122 per cent. So, a couple of things – strengthening the Unit Pricing Code. That's where we clearly display in the supermarket what you're paying per mil, per gram, per litre for the product that you're buying. So, you can't be so easily tricked by a small reduction in the size of the package, but a big increase in the size of the price. it's clearly displayed.
GIBSON:
How does that work now? Because you do see that sometimes at the supermarket.
JONES:
Yeah, we've got a code and it applies to the big guys. So, the big supermarkets, your Coles and your Woolies and some others. So, we'll be looking at 3 things. Firstly, an expansion of the code to other operators and where that's warranted. Secondly, improving the visibility and the display of the unit pricings, ensuring that it's not in micro print underneath all the other display items on the shelf. And thirdly, significantly beefing up the fines for a breach of the code. A million dollars fines for breach – for every instance of a breach where the retailers aren't complying with these new obligations. It's important. I think consumers have had enough and it's about our overall plan to ensure consumers get a fair deal at the supermarket.
GIBSON:
Now, a little earlier on the program, I learned that there's a French supermarket chain where this has been an issue over there. They've been calling it out with signs in the store. So, if the suppliers are reducing the size of products, this French supermarket alerts customers and puts a big sign up saying that it's been shrunk in size. Is that something we would look at?
JONES:
Wouldn't it be great if we saw our supermarkets voluntarily doing that on the products that they have on their shelves?
GIBSON:
Yes.
JONES:
What we'll be putting in place is the arrangement I've described, the unit pricing, so that people can see and can compare whether what they're paying per litre, per gram, per mil for the products they're putting in their trolley.
GIBSON:
Sorry, I'm just trying to clarify because, as I said, we do see that at the majors now. I'm just trying to clarify what it is that's changing. What are we going to notice as shoppers that is going to be different to what we can see now, where it says per 100 grams or whatever else?
JONES:
Well, what are the problems with the existing code? It doesn't spell out manner and form and the way in which the advertising is. So, ensuring that it is clearly visible and presented in a way that all shoppers, old and young, can look at this and make a clear comparison about the value of the goods that they're buying. So, that's the first thing. So, the manner and the form of the advertising. Secondly, looking at who we apply the code to. And the third thing is putting in place teeth – so fines for a breach of the code, up to a million dollars for each instance of a breach – which will ensure, put a really incentive to the supermarkets to do the right thing for any breach.
GIBSON:
All right, this is Stephen Jones, the Assistant Treasurer on the line, telling us about these changes. I'm sure, as you said, the clear labelling, I mean, it is an issue for those of us getting older. I'm sure it's not my eyes, Stephen. I'm sure it's the labels getting smaller and smaller.
JONES:
It's not your eyes and it's not your imagination.
GIBSON:
Exactly.
JONES:
Some of those packets are getting smaller and so is the print.
GIBSON:
Exactly.
JONES:
This is what we're getting to.
GIBSON:
Thank you for clarifying that for me. Now, this is part of a broader issue, though, isn't it? I mean, the Prime Minister was on the show a couple of weeks ago, really having a crack at the supermarkets over these dodgy discounts. There's more funding for the ACCC. This – the Government's really got the supermarkets in its sights. What's. I mean, I know what's prompted it. You want things to improve, but it's a real concerted campaign at the moment.
JONES:
It is, right. You know, when you look at the pressures that are coming down upon families, cost of living is their first, second and third issue. We're doing what we can around energy, around childcare and around medical expenses. But what consumers, what people are saying to us is their biggest bills after the petrol and insurance and all the rest of it, is what they're putting in their shopping trolley every week and they're feeling like they're getting ripped off. So, having a good hard look at the pricing practices, false and misleading sorts of conduct that is going on and a big crackdown on that, so that – to stop the rip off and to ensure that Australians are getting a fair go when they shop. Absolutely high priority for the government.
GIBSON:
Stephen Jones, just before I let you go, I'm just going to read you this because it just relates to what we're just chatting about. I'm getting so many text messages coming in with examples, but just related to what we were discussing. Andrew says 'The font size on unit pricing is a big issue. It's difficult to read, even with good eyesight and often unclear on specials'. And this next person says, 'Yes, Mark, very often when the supermarkets display specials, the price per gram disappears'. That's from Justine. So, that's what you're talking about?
JONES:
Absolutely. And before we go, can I just give one note of caution to your listeners? They're right to be angry about the sharp practice of supermarkets, but please don't take it out on the staff at the front line. They're just doing their job. By all means, send your emails, your messages and all the rest of it to their bosses, but don't take it out on the staff at the front line. They're just doing their job.
GIBSON:
Good point. Thanks for your time.