The Unit Pricing Code is a mandatory industry code of conduct that is enforceable under the Competition and Consumer Act 2010 (the Act).

In January 2009 the Australian Government announced the introduction of a national unit pricing scheme. The scheme is the first consumer-related code prescribed under Part IVB of the Act, which provides for industry codes. The new law is contained in the Trade Practices (Industry Codes—Unit Pricing) Regulations 2009 (the code).

Purpose

The code makes it compulsory for certain grocery retailers to use unit pricing when selling non-exempt grocery items to consumers.

This enables consumers to assess the price of a range of comparable items by using a common measure or unit price when purchasing grocery items.

Role of the ACCC

Our role is to promote and ensure compliance with the code by helping grocery retailers understand their rights and obligations under the code and the Act. We do this by developing educational and guidance materials as well as by giving presentations through our outreach programs in each state and territory.

We are also responsible for investigating complaints and, where necessary, taking enforcement action against anyone who fails to comply with the code and the Act.

Who needs to unit price?

The Unit Pricing Code applies to grocery retailers who fall within one of the following categories:

store-based grocery retailer
online grocery retailer
participating grocery retailer.

Under the code, a store based grocery retailer is defined by reference to a three-limb test:

the retailer sells a minimum range of food based grocery items
the retailer has more that 1000 square metres of floor space for displaying grocery items
the retail premises is used primarily for the sale of food based grocery items.

A retailer that satisfies all three limbs would need to comply with all requirements under the code.

An online grocery retailer is a grocery retailer that sells a minimum range of food based grocery items online.

A participating grocery retailer is a retailer that:

sells the minimum range of food based grocery items
voluntarily displays a unit price for one or more grocery items required under the code (apart from unit prices displayed in compliance with mandatory state and territory legislation).

When will the code apply?

The code has been in effect since 1 July 2009.

Participating grocery retailers that elect to opt-in to the scheme and display unit prices will have a six-month transition period after the retailer begins to display unit prices to comply with the code. The participating grocery retailer must also display unit prices for all non-exempt grocery items.