Consumer groups take aim at supermarket loyalty schemes

Consumer groups take aim at supermarket loyalty schemes

Coles and Woolworths are being urged to scrap member-only costs for purchasers who’ve joined membership packages.

A parliamentary listening to into grocery store costs will happen in Melbourne on Wednesday, with client advocates to push for fairer costs on the try.

The inquiry was launched in response to allegations of main supermarkets worth gouging clients, ripping off suppliers and strangling rivals.

Choice will seem earlier than the committee and urge main retailers to cease providing discounted items to clients on loyalty packages.

The client group has additionally referred to as for a ban on app-only reductions, in addition to multi-buy reductions that intention to extend spending in retailer.

In its submission to the inquiry, Choice stated the practices have been deceptive and misleading.

“Member-only pricing is an unfair pricing practice, as it pushes consumers to sign up to rewards programs – providing their personal information and detailed purchasing behaviour in exchange for cheaper products,” its submission stated.

“This is particularly inappropriate when applied to essential products like groceries, as everyone should be able to access affordable groceries without joining a membership program.”

Choice additionally took intention at “discounted” stickers on gadgets whose costs haven’t been lowered.

“Consumers are drawn to the special sticker and are led to believe they are receiving a discount when in fact, the price does not appear to have changed,” its submission stated.

Primary producers can even seem on the listening to, together with the National Farmers’ Federation, AUSVEG and Fruit Growers Victoria.

On Tuesday, the committee heard low costs for produce set by main retailers have been making business unsustainable for farmers.

The worth being provided by supermarkets to farmers for a lot of merchandise had remained much like a decade in the past, regardless of labour prices rising.

Source: www.perthnow.com.au