Supermarket giant Coles has apologised after prematurely raising prices on popular items it had promised would remain “locked”.
Prices on 20 items were raised before the end of their promotional period, according to Coles, on a diverse range of products including dishwashing tablets, chopped tomatoes, corn flakes and pregnancy tests.
The apology came after consumer advocacy group Choice submitted a complaint to the competition regulator on the problems with the supermarket’s promotional campaign.
A Coles spokesperson said the supermarket was refunding the full cost to affected customers.
“We know cost of living is the biggest focus for so many of our customers,” the spokesperson said.
“We sincerely apologise to our customers for this mistake and we are working quickly to make it right.”
While Coles can process refunds for those who bought online or used rewards cards, other shoppers would need to show a receipt to get their money back.
Pricing practices at Coles and rival Woolworths will come under scrutiny at a Senate inquiry early next year amid concerns they have profiteered during an inflationary period marked by fast-rising food costs.
The inquiry was set up after the Greens secured cross-party support to delve into the business practices of the dominant retailers, which control about two-thirds of the market.
Andrew Kelly, the deputy director of campaigns at Choice, said Coles had failed to follow through on promises made to customers in a promotion that promised to keep prices locked.
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“A retailer as big as Coles failing to keep its pricing promises is simply unacceptable, particularly during a cost-of-living crisis where so many people are already worried about the price of food and groceries,” Kelly said.
Guardian Australia has previously documented problems with supermarket promotions and shrinking products.
The big retailers have also enjoyed expanding profit margins at the same time as rising grocery prices weigh on households.
Coles and Woolworths have consistently denied they profiteer and cite productivity improvements as part of the reason for their strong returns.
So far, Australian supermarkets have avoided the type of scrutiny being applied by policymakers overseas, with the UK, France, New Zealand and Canada using a combination of pricing investigations and threats of price controls and sanctions to put pressure on grocery prices.
The chief executive of Coles, Leah Weckert, and the CEO of Woolworths, Brad Banducci, have confirmed they will appear at the Senate inquiry, in hearings expected to take place in the first few months of next year.
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