Government review of supermarket unit pricing: what it could mean for your business 

The Federal Government recently wrapped up a consultation on supermarket unit pricing. While it might sound like a purely consumer issue, it could have very real commercial impacts for businesses supplying into the grocery sector. 

On 1 September 2025, Treasury opened consultation on strengthening the Retail Grocery Industry (Unit Pricing) Code of Conduct. Submissions closed just a few weeks later on 19 September 2025, marking the end of a very short window for stakeholders to have their say. 

A Quick Recap 

Unit pricing allows shoppers to compare costs per standard measure (for example, $/100g or $/litre) across different pack sizes and brands. 

Since 2009, large supermarkets have been required to display this information to help customers spot value. Compliance costs have generally been low and penalties limited but the Government’s review signals that much tighter rules may be coming. 

Why Now? 

The ACCC’s recent supermarket inquiry highlighted that while unit pricing is useful, there are still significant gaps. 

The key concern is shrinkflation when pack sizes quietly reduce while prices remain the same or even increase. 

With cost-of-living pressures dominating headlines, the Government wants clearer, fairer pricing to rebuild consumer trust. 

What Might Change? 

Proposals considered in the consultation paper include: 

• Shrinkflation alerts – supermarkets may need to flag when a product’s pack size shrinks without a matching price cut. 

• Clearer displays – larger, more prominent unit prices both in-store and online. 

• Wider coverage – expanding the rules beyond major supermarkets to smaller retailers and online sellers. 

• Standardised measures – eliminating confusing “per roll” vs “per sheet” comparisons. 

• Civil penalties – introducing fines for non-compliance. 

The Commercial Impact 

• Suppliers: Packaging choices could come under closer scrutiny. Changes in size or format may trigger disclosure obligations. 

• Retailers: Potential costs in updating shelf labels, in-store signage, software, and e-commerce platforms. 

• Opportunities: Businesses that embrace transparency can build consumer trust and stand out in a competitive market. 

What You Should Do 

The consultation period has now closed. Treasury is reviewing submissions, and the Government is expected to announce its response later in the year. 

Businesses in food, grocery, and household goods should stay alert. The final rules could affect pricing strategies, packaging decisions, and compliance obligations across the sector. 

Keeping on top of these developments will allow your business to adapt early and potentially turn transparency into a competitive advantage.