Prime Minister Anthony Albanese accuses big supermarkets of ‘not being fair dinkum’ after accusations

The reputation of Coles and Woolworths has been damaged by their alleged sham discounts, Prime Minister Anthony Albanese says, as he warned the supermarkets would face more than a “slap on the wrist” if found to be ripping off customers.

Mr Albanese has accused the supermarkets of “not being fair dinkum” after their alleged conduct was brought to light in twin lawsuits brought by the Australian Consumer and Competition Commission (ACCC).

The supermarkets are accused of temporarily jacking up the cost of common products before putting specials tags on them, making them appear cheaper when in fact they were more expensive than before the brief price hike.

“Australians are rightly outraged at what has been going on in these major supermarkets,” Mr Albanese said.

“When shoppers go to their checkout, they expect in a supermarket where they see signs of ‘specials’, for it to actually be cheaper.

“What what is alleged here is that supermarkets have increased their price by a dollar, for example, then decreased by 50 cents. So it’s 50 cents more expensive than it was just a short period earlier, and yet they’re pretending that somehow customers are getting a bargain.

“Now that is not the Australian way. It’s not honest, it’s not fair dinkum, and that’s why the ACCC are taking this strong action.”

Mr Albanese accepted governments had been too soft on supermarkets for too long, which was why Labor was planning to introduce a new mandatory food and grocery code which include multi-million-dollar fines for serious breaches.

“They will get more than a slap on the wrist,” he said.

“I think the brand has been damaged by this because it confirms what many shoppers think and what they’ve been saying to me.”

The Prime Minister again insisted Coalition-backed divestiture laws, which could break up supermarket chains found to be price gouging, was not the solution.

“If you have a Coles supermarket in a particular area in Mandurah and it’s sold, then it’s going to be bought by Woolworths or by Aldi or someone else,” he said.

“So that’s not really the solution. “

Mr Albanese is on a flying one-day trip to Perth – his second visit to the State in three weeks.

The Prime Minister joined Premier Roger Cook on Monday to mark the end of works on the Victoria Park Canning Level Crossing Removal Project, a milestone in the Metronet project.

Mr Albanese accepted the works had caused disruptions but insisted the project would be “such as extraordinary gain” for commuters using the rail line.

The visit coincides with a Reserve Bank board meeting, where it widely expected the cash rate will remain at 4.35 per cent for a seventh consecutive month.

Mr Albanese took aim at the Coalition and the Greens for refusing to support the Federal Government’s planned overhaul of the Reserve Bank, which would create separate boards to oversee monetary policy and governance.

The Greens have refused to back the reforms until the RBA lowers rates, or the government intervenes and does so themselves.

Mr Albanese accused the Greens of populism, saying such a policy would have a “negative impact on economic growth and economic policy”.