The Federal Government recently closed submissions on a review of the Unit Pricing Code of Conduct — and the changes under consideration could reshape pricing and packaging strategies across the grocery and retail industry.
What Is Unit Pricing?
Unit pricing requires supermarkets to show the cost per 100g, 1L, or similar measure next to the retail price. This helps shoppers compare value across brands and package sizes.
But with rising scrutiny over shrinkflation (smaller pack sizes, same price), the government is looking to tighten the rules.
Key Proposals Under Review
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Shrinkflation alerts: Supermarkets may have to clearly indicate when a product has shrunk without a price drop.
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Stronger display rules: Larger, clearer, and more consistent unit pricing across physical and digital storefronts.
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Expanded scope: Smaller retailers and online sellers may now be required to comply.
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Standardised units: Clearer rules to eliminate confusing labels like “per roll” vs “per sheet”.
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Enforcement: Civil penalties for non-compliance could be introduced.
What This Means for Business
If implemented, the changes could require:
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Shelf label updates
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System upgrades for inventory and POS
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Marketing and packaging overhauls to align with new display requirements
While there may be upfront costs, brands that embrace transparency can build stronger consumer trust and loyalty.
Businesses in food, personal care, and household goods should prepare now. Treasury will release outcomes later this year.
