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Coles launches new AI-powered shopping trolley

Coles is set to become the "first Australian retailer" to introduce AI shopping trolleys, letting shoppers pick, weigh and pay for their groceries without having to visit a checkout. The supermarket giant said its smart trolley uses advanced AI technology, sensors and an in-built scale to scan groceries, including fresh produce, directly into shopping bags. Shoppers can also use an interactive digital screen to identify and locate in-store specials as well as keep track the running total of their shop to help manage their budget and ensure “there are no surprises” when they go to pay. The trolleys are also designed to "streamline the checkout process" as each smart trolley comes with an EFTPOS machine attached. Coles Chief Digital Officer, Ben Hassing, said the introduction of its Smart Trolley showcases Coles’ commitment to delivering value and convenience to customers through innovative digital solutions. “As the first retailer in Australia to introduce AI-powered trolleys, we’re excited to offer our customers a convenient and engaging way to shop in-store, helping them save time, manage their budget and checkout faster – or at their own pace,” Ben said. “The Coles Smart Trolley illustrates our omnichannel approach, leveraging digital capabilities to enrich the in-store experience. “We are committed to testing and learning through innovative solutions to make sure we are delivering on customer needs, increasing convenience, and helping customers discover more value through their shop at Coles.” Coles’ smart trolley was created by New York-based software developers Instacart, which rolled out its AI-powered grocery carts in several supermarkets overseas earlier this year. However, not everyone is onboard with the smart trolleys, as many shoppers said they would "refuse" to use the AI-powered carts, blasting them as “lazy” and expressing fears supermarkets would also store personal data. “I don’t work for them, scan my products and pack my bags, as per your job description,” one raged on Facebook after Instacart launched in US supermarket ShopRite. “Not a chance I will use an AI trolley, I want a human to scan my groceries,” another added. Coles will trial the “all-in-one” shopping device at its Coles Richmond Traders store in Melbourne from January next year. The announcement comes after <a href="https://www.oversixty.com.au/lifestyle/food-wine/woolies-trial-bold-new-scan-as-you-go-trolleys" target="_blank" rel="noopener">Woolworths</a> also announced the launch of "scan as you go" trolleys, although the Woolies carts don't use AI technology to read what is being placed into the trolley, instead enabling shoppers to manually scan each item as they go. Image credits: Coles

Technology

"Misconceived": Coles and Woolies fight allegations of price gouging

Coles and Woolworths are set to fight the allegations that they have been inflating prices, as they begin their cases against the Australian Competition and Consumer Commission (ACCC). The lawyers for both supermarket giants appeared in the Federal Court on Wednesday after the ACCC claims the companies violated consumer law by intentionally misleading shoppers. The ACCC claim both Coles and Woolworths inflated the prices on hundred of items before placing them on sale with their "Down Down" and "Prices Dropped" campaigns. The products - including dairy, pet food and personal care - sold for less than the inflated prices, but still more than the regular price that applied before the price spike. Cameron Moore SC, representing Woolworths, told the court the supermarket had not initiated the temporary spikes in prices and would be fighting the ACCC's allegations. "The suggestion is that Woolworths initiated temporary price spikes and that's not correct factually," Moore said. "We say factually, the ACCC's case is misconceived." Both Coles and Woolworths said their increase in prices came at the demand of suppliers, who pushed for the increase due to their rising costs. John Sheahan KC, representing Coles, said the case was not as simple as alleged by the ACCC and any outcome could have significant implications for the whole industry. Coles and Woolworths have until November 29th to file a written response to the ACCC's allegations, before both parties return to the Federal Court in December for another case management hearing. Image credits: Shutterstock

Legal

Coles and Woolies shoppers could claim thousands over alleged deceptive pricing

Coles and Woolworths shoppers could claim up to $5,000 if the supermarket giants are found out for deceiving customers with dodgy pricing tactics, according to a leading lawyer. Carter Capner Law is one of two firms investigating whether a class action suit on behalf of shoppers is viable in conjunction with the ACCC's legal action against the two chains. Both Coles and Woolworths have bee accused of violating Australian consumer law by the consumer watchdog after allegedly intentionally misleading customers by driving up prices and then putting those items on sale for their original prices under the "Prices Dropped" and "Down Down" campaigns. “Early estimates suggest that households could claim between $2,000 and $5,000, depending on the amount spent and the impact of the deceptive pricing,” law director Peter Carter said, who began advocating for people after he received an "avalanche of calls from outraged customers". While Carter said the firm initially had no plans to commence a class action, he admitted that after speaking about it to the media, the company were inundated with Coles and Woolworths customers "demanding action and compensation". He believes Australians already doing it tough through the cost of living crisis felt "betrayed" by the supermarkets, while Flinders University research fellow in law Dr Joel Lisk said that the class action is "a positive" for shoppers. "The ACCC proceedings aren't about getting refunds for customers," he told Yahoo. "But if they are successful it would mean customers have, in theory, been misled and deceived and could be entitled to damages." When it comes to damages, it's something Dr Lisk said "starts to add up" for customers, although it's "hard to say" if financial penalties to businesses found guilty of wrongdoing would impact misleading and deceptive conduct in the future. "If [fines are] seen as just the cost of doing business it doesn't really dissuade businesses from engaging in misleading and deceptive conduct," he said. "Seeking damages from business for the losses that individuals like us have incurred is one way of doing that. But of course, we're talking probably about dollars and cents in transactions when businesses like Coles and Woolworths deal in the billions." Image credits: Shutterstock

Legal

ACCC launches legal action against Coles and Woolworths

The Australian Competition and Consumer Commission (ACCC) has launched legal action against supermarket giants Woolworths and Coles. The ACCC alleges that they breached consumer law by misleading customers through fake discount pricing on hundreds of products. They also alleged that both companies had sold items at regular prices for up to six months, then increased the prices of those items by at least 15 per cent before placing them in the promotion. The ACCC alleges up to 266 products were involved in the fake discount pricing at Woolworths at different times over an estimated 20 month period, and 245 products for Coles over a 15 month period. “Following many years of marketing campaigns by Woolworths and Coles, Australian consumers have come to understand that the ‘Prices Dropped’ and ‘Down Down’ promotions relate to a sustained reduction in the regular prices of supermarket products,” ACCC chair Gina Cass-Gottlieb said. “However, in the case of these products we allege the new ‘Prices Dropped’ and ‘Down Down’ promotional prices were actually higher than, or the same as, the previous regular price.” Some of the Woolworths products reportedly included Tim Tams, Dolmio sauces, Doritos Salsa, Energizer batteries, Kellogg's cereals and more. For Coles, products reportedly included Arnott’s Shapes biscuits, Band-Aids and Cadbury chocolates amongst others. In a statement, Woolworths CEO Amanda Bardwell said they would carefully review the claims and engage with the ACCC on the matter. "Cost-of-living pressures remain a key issue for millions of Australians who shop with us every week,” she said. "Our customers are telling us they want us to work even harder to deliver meaningful value to them and it's important they can trust the value they see when shopping our stores. "Our Prices Dropped program was introduced to provide our customers with great everyday value on their favourite products. "We remain committed to offering many ways for customers to save at the checkout, including thousands of weekly specials, everyday low prices on household essentials, a great value own brand range and through our Everyday Rewards program." Coles said the allegations related to a period of significant cost inflation for the retailer. “Coles’ own costs were rising, which led to an increase in the retail price of many products,” it said. “Coles sought to strike an appropriate balance between managing the impact of cost price increases on retail prices and offering value to customers though the recommencement of promotional activity as soon as possible after the establishment of the new non-promotional prices.” CHOICE Director of Campaigns Rosie Thomas welcomed the ACCC's announcement and call for greater transparency in supermarket pricing. "We know … promotional labels at the major supermarkets often confuse shoppers and the frequent changes in prices make it difficult to tell whether there is a genuine discount or not," she said. The ACCC said it identified the conduct through consumer contacts and social media monitoring. "We're seeking a significant penalty," the ACCC chair said. "This is serious conduct that is of great concern to us, that affected many consumers with millions of products sold, subject to this practice." Image: ABC News

Legal

Shoppers outraged over Coles bin full of discarded groceries

A shocking photo of a bin filled with discarded groceries at the back of a Coles supermarket has gone viral, outraging many shoppers. The photo, taken behind the Drouin store in West Gippsland, Victoria, shows a skip bin measuring over a metre high overflowing with tens of thousands of dollars worth of food, including meat, ice cream, pasta, pizzas, dips, cheeses, juice and smoked salmon. According to 7News, the products were thrown out after the region was hit with a storm that caused a power outage, and as the store did not have a backup generator, the refrigerated food was spoiled and needed to be thrown out. Coles has explained that items had to be discarded to ensure customer safety, but many shoppers were left shocked and infuriated about the waste, arguing the store should have been ready for the storms with backup generators. “For the 2023/24 financial year, Coles Australia reported a net profit of $1.1 billion and can’t afford back up generators, go figure,” one wrote. Others insisted some of the food could have been saved or donated, as one person said, “Butter that stays on the bench for two weeks (is) fine!” while another insisted, “at least donate it”. A supermarket worker commiserated with the upset shoppers, as they wrote online, “As someone who works for one of the supermarket chains, I have had to partake in this due to a prolonged power outage earlier this year.” “I feel for these staff, there’s nothing worse than having to throw out so much refrigerated stock. Coming from a family who didn’t have much, I get the pain people feel from this incident.” However, one social media user noted that regarding donations, “legally they cannot, if they give someone food poisoning and kill them they are liable”. A Coles spokesperson told <a href="https://www.news.com.au/lifestyle/food/photograph-of-coles-bin-full-of-discarded-items-stuns-shoppers/news-story/871cedeb7daf66422534e4aee55f1ee4" target="_blank" rel="noopener">news.com.au</a> that food safety is a top priority, saying in a statement, “Due to the extreme weather that hit much of Victoria early last week, there were widespread power outages, including in the Drouin and surrounding areas.” “Food safety is paramount at Coles and unfortunately as a result of products being un-refrigerated for an extended period of time, for safety and quality reasons, we needed to dispose of a number of products to ensure customer safety. “Where possible, Coles always donates product that is fit for use and safe for consumption to food rescue organisations.” Image credits: 7News

Money & Banking

Restaurant charges diners $95 to slice up birthday cake

A restaurant in Italy has been slammed online after charging a group of diners a hefty cost to simply cut a birthday cake into slices. A family attended the high-end restaurant in the southern area of Arezzo to celebrate their mother's birthday, after they had asked the restaurant in advance if they could bring in an outside cake. After enjoying their meal, which came to a whopping €659 or $1,083 AUD, they were slapped with another fee of €58 or $95 to cut the cake and bring it to the table. Local news outlet <a href="https://corrierefiorentino.corriere.it/notizie/24_agosto_26/arezzo-ristorante-chiede-58-euro-solo-per-tagliare-la-torta-lo-scontrino-diventa-virale-e-il-gestore-quasi-si-scusa-267975fd-2227-4beb-9621-3bffb3aa4xlk.shtml" target="_blank" rel="nofollow noopener">Corriere Fiorentino</a> reported that the cost of slicing the cake was more than the cake itself. Two of the dinner guests shared the story of the expensive fee on a local Facebook page, claiming the restaurant said it is the rule of their establishment and they were required to pay it. The owner of the restaurant told the Italian media site, "We do not charge a cover charge and we mainly serve dishes of our own production, so we try to discourage those who bring things from outside." "If we consider that in Arezzo the average cover charge is 2.5 euros per person, there is not such a big difference," they said as they explained the group of diners was 13 people. "My restaurant has to pay for the waiter who serves at the table, the dishwasher and other related services. We have to recover them somehow." However, the owner did admit, "I wasn't there that evening and my employees were perhaps too fussy in managing the situation that had arisen, perhaps cutting the usual price a little or even not charging anything for the cake." "Better 50 euros less and people going home happy than this misunderstanding in which we are all damaged." Image credits: Corriere Fiorentino / Shutterstock

Travel Trouble

Australia's cheapest supermarket revealed

Australia's cheapest supermarket has been revealed, and here's how much you could actually save. Customer advocacy group Choice has released its first “basket of goods” report, which analyses supermarket prices across the country. As part of their research, they deployed 81 mystery shoppers to different regional and metropolitan supermarkets across the country, including Aldi, Woolworths, and Coles. The mystery shoppers recorded the prices for 14 common grocery items including apples, carrots, Weet-Bix, sliced white bread, flour, penne pasta, white sugar, tea bags, tinned diced tomatoes, a block of tasty cheese, full-cream dairy milk, frozen peas, minced beef and butter. They found that Aldi is Australia's cheapest supermarket saving customers around $17. “Aldi was the clear leader on value for money in our first supermarket basket survey for 2024, with our basket of 14 products costing just $51.51 – coming in at about 25 per cent cheaper than Coles or Woolworths,” the watchdog’s CEO, Ashley de Silva, said. "Coles was the most expensive at $69.33, while the basket at Woolworths came in at $68.58.” The research was funded by the federal government as part of their action on supermarket pricing. This comes after Prime Minister Anthony Albanese announced a review into the Food and Grocery Code of Conduct earlier this year, warning supermarkets to pass on any savings they make from suppliers to consumers. The code is currently voluntary, with calls for it to be made mandatory, which could result in huge financial penalties on supermarkets with annual revenues above $5bn that breach the agreement. The final review is reportedly expected later this week. Aldi has also issued a statement following the findings, saying it “reaffirms Aldi’s Price Promise” which ensures the supermarket “won’t be beaten on the cost of your weekly shop”. “The data reflected across this basket of goods is indicative of the savings across our entire range,” Jordan Lack, Managing Director at Aldi Australia, said. “We take our role as Australia’s most affordable supermarket seriously and every day, every element of our business is oriented around how we can continue to deliver on our ambition to provide high quality groceries at the lowest possible price.” Image: Shutterstock

Money & Banking

“Makes me proud”: Coles applauded for Anzac Day display

An impressive Anzac Day display at a Coles supermarket has received a flood of attention, with many quick to praise the supermarket for the tribute. The display, situated at the entrance of the Annandale Coles store in Townsville, Queensland, features a large statue of a veteran surrounded by poppies and a “Lest We Forget” flag, and countless packets of Anzac biscuits for customers to enjoy. The worker who created the display said the tribute was in honour of her father: a war veteran. The Queensland store is also situated opposite the Lavarack Barracks in Townsville, the largest army base in Australia. A photo of the display was posted online by a Coles shopper and quickly went viral. “Coles Annandale Townsville. Huge display right as you walk in, brilliant!” the shopper wrote. “Take note, Woolworths.” The comments are in reference to <a href="https://oversixty.com.au/finance/legal/pauline-hanson-slams-woolies-controversial-anzac-day-decision" target="_blank" rel="noopener">Woolworths</a> saying they are not doing anything special for Anzac Day this year, other than selling charity pins for the RSL and selling Anzac biscuits, which are available all year round. Many social media users were elated by the display, sharing their comments to praise the supermarket's efforts. One person said, “Bloody well done Coles - too much Aussie stuff being constantly eroded," while another wrote, “Great respect for our Diggers Thank you Coles Annandale Townsville.” One more added, “That is great. As a veteran it makes me proud.” Despite Woolies announcement about this year's lack of Anzac Day fanfare, shoppers said that they’d seen similar displays at other supermarkets around the country. “My local Woolies has Anzac biscuits and all the Anzac badges on a big display just as you walk in the door,” said one. Another added, “Woolies Maryborough has a similar display!” Image credits: Facebook <p class="css-1n6q21n-StyledParagraph e4e0a020" style="box-sizing: border-box; overflow-wrap: break-word; word-break: break-word; margin: 0px 0px 1.125rem; line-height: 25px; font-size: 1.125rem; font-family: HeyWow, Montserrat, 'Helvetica Neue', Helvetica, Arial, sans-serif; caret-color: #292a33; color: #292a33;">

Caring

The secret sauce of Coles’ and Woolworths’ profits: high-tech surveillance and control

<a href="https://theconversation.com/profiles/lauren-kate-kelly-1262424">Lauren Kate Kelly</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Coles and Woolworths, the supermarket chains that together control <a href="https://www.abc.net.au/news/2024-02-20/woolworths-coles-supermarket-tactics-grocery-four-corners/103405054">almost two-thirds</a> of the Australian grocery market, are facing unprecedented scrutiny. One recent inquiry, commissioned by the Australian Council of Trade Unions and led by former Australian Consumer and Competition Commission chair Allan Fels, found the pair engaged in unfair pricing practices; an ongoing <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Supermarket_Prices/SupermarketPrices">Senate inquiry into food prices</a> is looking at how these practices are linked to inflation; and the ACCC has just begun <a href="https://www.accc.gov.au/inquiries-and-consultations/supermarkets-inquiry-2024-25">a government-directed inquiry</a> into potentially anti-competitive behaviour in Australia’s supermarkets. Earlier this week, the two companies also came under the gaze of the <a href="https://www.abc.net.au/news/2024-02-19/super-power-the-cost-of-living-with-coles-and-woolworths/103486508">ABC current affairs program Four Corners</a>. Their respective chief executives each gave somewhat prickly interviews, and Woolworths chief Brad Banducci <a href="https://www.abc.net.au/news/2024-02-21/woolworths-ceo-brad-banducci-retirement-four-corners/103493418">announced his retirement</a> two days after the program aired. A focus on the power of the supermarket duopoly is long overdue. However, one aspect of how Coles and Woolworths exercise their power has received relatively little attention: a growing high-tech infrastructure of surveillance and control that pervades retail stores, warehouses, delivery systems and beyond. <h2>Every customer a potential thief</h2> As the largest private-sector employers and providers of essential household goods, the supermarkets play an outsized role in public life. Indeed, they are such familiar places that technological developments there may fly under the radar of public attention. Coles and Woolworths are both implementing technologies that treat the supermarket as a “problem space” in which workers are controlled, customers are tracked and profits boosted. For example, in response to a purported spike in shoplifting, a raft of customer surveillance measures have been introduced that treat every customer as a potential thief. This includes <a href="https://www.news.com.au/lifestyle/food/eat/coles-introducing-new-technology-which-will-track-shoppers-every-move/news-story/86ea8d330f76df87f2235eeda4d1136e">ceiling cameras</a> which assign a digital ID to individuals and track them through the store, and <a href="https://www.thenewdaily.com.au/finance/consumer/2023/08/16/smart-gate-technology">“smart” exit gates</a> that remain closed until a purchase is made. Some customers have reported being “<a href="https://7news.com.au/lifestyle/coles-supermarketshoppers-dramatic-checkout-experience-goes-viral-i-was-trapped-c-12977760">trapped</a>” by the gate despite paying for their items, causing significant embarrassment. At least one Woolworths store has <a href="https://www.news.com.au/finance/business/woolies-in-wetherill-park-fitted-with-500-tiny-cameras-to-monitor-stock-levels/news-story/585de8c741ae9f520adcc4005f2a736a">installed 500 mini cameras</a> on product shelves. The cameras monitor real-time stock levels, and Woolworths says customers captured in photos will be silhouetted for privacy. A Woolworths spokesperson <a href="https://www.smh.com.au/national/nsw/up-to-70-cameras-watch-you-buy-groceries-what-happens-to-that-footage-20230819-p5dxtp.html">explained</a> the shelf cameras were part of “a number of initiatives, both covert and overt, to minimise instances of retail crime”. It is unclear whether the cameras are for inventory management, surveillance, or both. Workers themselves are being fitted with body-worn cameras and wearable alarms. Such measures may protect against customer aggression, which is a <a href="https://www.abc.net.au/news/2023-11-22/retail-union-staff-abuse-cost-of-living-christmas/103117014">serious problem facing workers</a>. Biometric data collected this way could also be used to discipline staff in what scholars Karen Levy and Solon Barocas refer to as “<a href="https://ijoc.org/index.php/ijoc/article/view/7041">refractive surveillance</a>” – a process whereby surveillance measures intended for one group can also impact another. <h2>Predicting crime</h2> At the same time as the supermarkets ramp up the amount of data they collect on staff and shoppers, they are also investing in data-driven “crime intelligence” software. Both supermarkets have <a href="https://www.smartcompany.com.au/industries/information-technology/grocery-chains-surveillance-tech-auror/">partnered with New Zealand start-up Auror</a>, which shares a name with the magic police from the Harry Potter books and claims it can predict crime before it happens. Coles also recently began a partnership with Palantir, a global data-driven surveillance company that takes its name from magical crystal balls in The Lord of the Rings. These heavy-handed measures seek to make self-service checkouts more secure without increasing staff numbers. This leads to something of a vicious cycle, as under-staffing, self-checkouts, and high prices are often <a href="https://www.aap.com.au/news/retail-workers-facing-increased-violence-and-abuse/">causes of customer aggression</a> to begin with. Many staff are similarly frustrated by <a href="https://www.theguardian.com/business/2023/jun/05/coles-woolworths-court-accused-of-underpaying-workers">historical wage theft by the supermarkets</a> that totals hundreds of millions of dollars. <h2>From community employment to gig work</h2> Both supermarkets have brought the gig economy squarely <a href="https://theconversation.com/coles-uber-eats-deal-brings-the-gig-economy-inside-the-traditional-workplace-204353">inside the traditional workplace</a>. Uber and Doordash drivers are now part of the infrastructure of home delivery, in an attempt to push last-mile delivery costs onto gig workers. The precarious working conditions of the gig economy are well known. Customers may not be aware, however, that Coles recently increased Uber Eats and Doordash prices by at least 10%, and will <a href="https://7news.com.au/lifestyle/shoppers-slam-coles-over-major-change-to-half-price-buys-that-will-affect-millions-c-12860556">no longer match in-store promotions</a>. Drivers have been instructed to dispose of the shopping receipt and should no longer place it in the customer’s bag at drop-off. In addition to higher prices, customers also pay service and delivery fees for the convenience of on-demand delivery. Despite the price increases to customers, drivers I have interviewed in my ongoing research report they are earning less and less through the apps, often well below Australia’s minimum wage. Viewed as a whole, Coles’ and Woolworths’ high-tech measures paint a picture of surveillance and control that exerts pressures on both customers and workers. While issues of market competition, price gouging, and power asymmetries with suppliers must be scrutinised, issues of worker and customer surveillance are the other side of the same coin – and they too must be reckoned with.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/224076/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/lauren-kate-kelly-1262424">Lauren Kate Kelly</a>, PhD Candidate, ARC Centre of Excellence for Automated Decision-Making and Society, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-secret-sauce-of-coles-and-woolworths-profits-high-tech-surveillance-and-control-224076">original article</a>.

Money & Banking

Coles shopper humiliated after being accused of shoplifting

A Coles shopper has been left feeling humiliated after they were forced to lift up their shirt to prove they weren’t shoplifting. Tony Jones, 39, was about to pay for his groceries at self-checkout on Saturday morning when he was confronted by the employee of the Brisbane Coles who made the accusation. “And what about what’s under your shirt?” Mr Jones said the staff member loudly asked him, causing the other customers to look around. Mr Jones has a stoma as a result of having his entire bowel removed from bowel cancer a few years ago, and later developed an “extremely obvious” hernia at the site which “sticks out about 15 centimetres from my stomach”. “My initial reaction was flat-out shock, because she didn’t say it in a way of asking me, she flat-out accused me,” he told <a href="https://www.news.com.au/finance/business/retail/customer-with-obvious-hernia-humiliated-at-selfservice-checkout/news-story/56980cdcada75ba9ae0cca9cb90c75f0" target="_blank" rel="noopener">news.com.au</a>. “She seemed quite proud. Everybody in the self-checkout bay heard what she accused me of, and she walked over to me. I was just stunned, I guess I kind of shut down — I’ve never been accused of being a thief before — so I just lifted my shirt.” After revealing his condition, Jones was left feeling “violated” as the supermarket worker simply said, “Yeah, sorry, we’ve had a few of those lately,” apparently referring to shoplifting incidents. Coles has since apologised to Mr Jones, but that hasn’t made up for the trauma he endured in the supermarket. “I’ve lived here for 12 or 13 years, I’ve been at that Coles plenty,” he said. “Obviously I don’t expect retail staff to recognise everybody … I assume they’ve had some thefts lately, I’m not sure whether they’ve been given instructions to pull up more people because they don’t have a [security] gate yet.” Mr Jones took to Reddit to share the story of his encounter, asking those on the social media site, “Is Coles allowed to ask what’s under my shirt? When it’s just my hernia.” The post quickly went viral, attracting hundreds of comments. “Former loss prevention officer here — they cannot detain you in any way unless they have witnessed you select the goods and witnessed you not take advantage of a reasonable opportunity to pay,” one person wrote. Another woman said, “I have a permanent ileostomy and have had retail workers accuse me of stealing too. It’s annoying because most of the time I wear clothes where the top of it pokes out the top and it’s happened when I’ve worn clothes that completely covered it.” A third person commented, “Gentle reminder Coles turned a record profit in the midst of the Covid recession, then decided to install hard arse security detectors to catch thieves.” Mr Jones said the whole experience left him feeling rattled and upset, especially as he continues to undergo treatment for his condition and prepare for another surgery. “I’m not dealing with it great, if I’m truthful,” he said. “I’m seeing doctors weekly at the moment. Things add up, and getting called out on Saturday, it basically shut me down for the entire day, [left me] for lack of a better word feeling like s**t. I had all eyes on me. I’m not a social person so I just wanted to get out of there to be honest. I don’t think I’ll ever be going back to Coles.” Image credits: Getty Images

Body

Disabled customer "crushed" by Coles' new smart gate

A customer using a wheelchair has been crushed by Coles' new controversial smart gates, just months after it was rolled out in Aussie stores. The smart gates were added to self-serve check-outs across the country late last year as a security measure against thieves. The gates were installed with a range of other security measures in response to rising theft rates, including "CCTV, electronic article surveillance (EAS), and in some stores new smart gate technology that automatically opens as customers make payment for their products," according to a Coles spokesperson. But on Tuesday a customer, who chose to remain anonymous, said that one of the smart gates “slammed shut” on them and their wheelchair, while they were on their routine shopping trip with their son. After buying a few things the customer said that they were heading to the "wide open" gate, and their son passed through safely. But, when they tried to follow, the gate abruptly closed “hitting” their arms and “crushing” their wheelchair. The gate began to beep and only reopened when the customer pushed their way through. Fortunately, the customer was not injured but wanted to raise awareness on the issue. “I’ll be calling every day until SOMEONE tells me how to avoid being crushed next time,” they said. A few other annoyed customers slammed the "invasive" and "annoying" technology. “One literally snapped shut on our pram as we were pushing our kiddo through,” one person wrote on social media. “I’d walked out the store first, pram and husband following behind. Especially cause they make them too small for you to go side-by-side! “It’s insane, and I refuse to look at any self check out or check out with that in the path.” Another added: “Not long until an elderly person is knocked over by them and breaks their hip or similar." "It’s turning into a jail rather than a supermarket,” a third wrote. Image: Getty

Legal

Coles shopper admits to stealing to feed her family amid cost of living crisis

A woman has made a desperate plea to Prime Minister Anthony Albanese after overhearing a teary Coles shopper admit to shoplifting to feed her family. The woman was shopping in her local Coles supermarket when she overheard another shopper confess the desperate act to her friend, as the cost of living crisis continues to impact struggling Aussies. Australia’s cost of living crisis is continuing to see millions struggle with soaring interest rates and rent prices, high energy bills and rising supermarket costs, with many being forced to take drastic measures to survive. Sharing on Facebook, the woman said she was feeling “let down” and “hoodwinked” by the Albanese government after listening to the Coles customer’s heartbreaking story. “Anthony Albanese, I am so deeply saddened to hear someone shopping at Coles admit to her friend in tears that sometimes she now steals food because she simply can’t put food on the table any other way,” she wrote. “Of course there is food relief et al (but those services are also at breaking point). It’s disheartening to witness firsthand the desperation that leads someone to resort to theft just to put food on the table." “While I have you, I am feeling let down and somewhat hoodwinked by you. Your sentiment around truly understanding hardship because of your upbringing seems to have been just talk." “What I heard today made me realise that not enough is being done that was promised to make a positive impact on the lives of those struggling with adversity.” Many commented on the post saying not enough was being done to help battling Aussies, and urging the government to do more. “The line at ReachOut (food pantry) was around the corner and down the street this afternoon,” one said. Another added, “Food costs are beyond ridiculous right now. I fear that the horse has bolted and once it’s out ... it’s not coming back for pats. “And sorry to say but Albo is just another politician. Hope he sees this and listens but I’m not holding my breath. Sad state of affairs.” Image credits: Shutterstock

Money & Banking

"Dead dodgy": Outraged shopper uncovers sneaky Coles practice

One disgruntled shopper has called out Coles for their "deceptive" tactic to mislead customers about their special deal prices. After finding that prices online were often mismatched to prices in store, regular Coles shopper Rowan Element got into the habit of checking if the price of an item was the same on the specials tag and its original tag, with the initial price often exaggerated on the specials tag to make the promotion appear more appealing. On Thursday, Element discovered one Coles store in Canberra employing this sneaky practice with the original tag conveniently hidden behind the promotion. "I bought this humble pack of sliced mushrooms, they were on special 'two for $6.50' or $4 for one. When I moved the specials tag the price was $3.50... It is not the first time that I’ve noticed something like this," she told <a href="https://au.news.yahoo.com/coles-customer-catches-supermarket-in-dead-dodgy-practice-062334548.html" target="_blank" rel="noopener">Yahoo News Australia</a>. "Clearly Coles put the price up to make the 'special' look better but forgot to take off the original price ticket." After taking the mushrooms to the checkout and being charged $4 for the one pack, Element asked to speak to a manager and called out the "deceptive advertising". Staff provided a refund for the mushrooms and allowed the shopper to keep the produce before "literally running" to remove the offending tag from the shelf. Despite the small price discrepancy, the shopper believes the issue lies with the dishonestly of the supermarket giant, rather than with the small 50 cent disparity. "Sadly I think it's what we've come to expect from large corporations determined to make massive profits at the expense of their customers. There's total disregard for morality of their behaviour... It's dead dodgy" she said. Coles confirmed to Yahoo News the price tag in question at the Canberra store has been "corrected", however, it did not respond to questions regarding accusations that the supermarket was doing it on purpose. "Coles takes clear and accurate pricing information on tickets very seriously," a spokesperson said. "We always aim to ensure that our specials represent value for our customers and have confirmed that the special tickets were indeed correct in these instances." Image credits: Yahoo News / Shutterstock

Money & Banking

Inside Aussie couple's Coles wedding

A South Australian couple have tied the knot after seven years together, in the place where their relationship first began, Coles. Elisabeth Pel and Harley Liebelt, are former Coles workers who found love in the cereal aisle of a Coles in Mount Barker in 2016. Since then, they have built a family together and decided to tie the knot two weeks ago. “We worked for Coles Mount Barker, SA, for four years and we met each other in the grocery department,” Elisabeth told 7News. “We have since had a beautiful son together and two weeks ago we finally got married after seven years.” She then said that it had been the couple's dream to have their wedding photos taken at the Coles store where they met - and their photographer, Jacob Jennings, was happy to oblige. “Our photographer is an absolute wonderful human and when I suggested to him that we should take some photos at the Coles store we met in and the same aisle we met in he jumped at the idea!” the happy bride said. “So, on December 8 we went into the store in the afternoon and took photos. “These photos are more than I could have asked for. “We felt absolutely out of place but he made it wonderful and the store manager was also wonderful.” Their wedding photos have also received a lot of love on social media. “This is so fantastic in every way,” one said. “Damn, this is the best," another added. “I can’t deal,” a third wrote. A Coles spokesperson also congratulated the couple: “We are thrilled that two of our former team members found love and were able to return to where it all began for them.” Images: Jacob Jennings Instagram

Relationships

Jacqui Lambie fires up on Coles and Woolies

Jacqui Lambie has taken aim at Coles and Woolworths, after an inquiry has been launched against the supermarket giants. The supermarkets look set to be ordered to front up to a senate inquiry, to examine whether they are price gouging to get record profits amid a cost of living crisis. However, Tasmanian senator Jacqui Lambie said the supermarkets should face more than just an inquiry, and called on Prime Minister Anthony Albanese to take real action. “Let’s be honest, they are like a bloody cartel,” she told Sky News on Monday. “I think what I find really shameful … is that we’ve got to run another inquiry to tell us the same thing, when we know very well that if we bulked up the (Australian Competition and Consumer Commission) and gave it more powers they could actually fix this." “Where is the prime minister? Where is he?” Before the inquiry can officially be launched, the competition watchdog requires a referral from the Treasurer. Senator Lambie's opinions come after the Agriculture Minister Murray Watt called on the supermarket chains to freeze the price of a leg of Christmas ham, as Aussies continue to struggle with the cost of living crisis. “We know families are doing it tough at the moment and the cost of a lot of things is going up,” the Queensland senator said. “Presents for the kids, fuel to get to the other side of town to see your parents, fresh seafood as well as drinks, the cost of Christmas can really add up.” “Anything that can be done to give families a hand during this time would really be beneficial.” Coles and Woolworths have both insisted they will not be looking to hike up prices as it gets closer to the silly season, as both supermarkets have committed to dropping prices of popular Christmas items. Image credits: Getty Images

Money & Banking

Fed up farmer blasts major supermarkets for price gouging

In a heartfelt plea captured in a viral video, Ross Marsolino, a Victorian farmer and owner of Natural Earth Produce, expressed his frustration with major supermarkets and their pricing strategies for fruits and vegetables. Marsolino, who specialises in growing zucchinis, tomatoes and eggplants in Victoria's Goulburn Valley, said that the profit margins imposed by supermarkets are crippling farmers, adversely impacting consumers, and driving growers out of business. “We’re going to walk away from 80 acres today,” Marsolino said in his video posted to social media. “We’re not retailing the right price to be able to keep the product moving and selling. Plain and simple. The supermarkets are making too much profit out of our crops. We can’t survive. As growers we can’t afford to pay the workers, 50 people are going to be out of the system looking for work.” The crux of Marsolino's argument lies in the claim that supermarkets are engaging in price-gouging, purchasing produce from growers at a considerably lower price and then selling it at a steep markup. He highlighted the stark contrast between the $1.80 per kilo that supermarkets allegedly pay to farmers and the retail price of $4.99, stating that this disparity is unsustainable for growers. The consequence, as Marsolino outlined, is a domino effect on the entire supply chain. Farmers, unable to cover their costs, are forced to reduce the quantity of product they sell, leading to both financial losses for growers and higher prices for consumers. That is why, in his case, Marsolino is saying he is prepared to abandon his 80-acre zucchini crop, estimating the loss at a staggering $2 million. This decision, he said, is a result of the unsustainable economics of the industry. Marsolino's argument goes beyond his personal struggle; he contends that the high retail prices set by supermarkets are ultimately detrimental to consumers and the agricultural industry as a whole. He believes that if prices were lowered to a more reasonable level, consumers would be more inclined to purchase the produce, resulting in increased sales for growers and a healthier industry overall. The plea from Marsolino has also sparked a call for government intervention. He urged authorities to scrutinise the pricing practices of supermarkets, demanding transparency in their transactions with growers. Marsolino's desire is for someone to hold the major supermarket chains accountable for the prices they set and to ensure that they are fair and reasonable. In response to Marsolino's claims, representatives from Woolworths and Coles <a href="https://www.news.com.au/finance/business/retail/fed-up-farmer-abandons-80acre-zucchini-crop-blaming-high-markups-at-supermarkets/news-story/30c5ebbaa296e74b8c12c1da356696cd" target="_blank" rel="noopener">defended their pricing structures</a>. They argued that the prices paid to suppliers are influenced by various factors, including processing, transport, labour, packaging and market conditions. Both companies emphasised their commitment to fair pricing and their efforts to balance the interests of suppliers and consumers. Marsolino's plea serves as a reminder of the delicate balance required to sustain both the agricultural sector and the affordability of fresh produce for consumers. As the debate continues, it remains to be seen whether there will be a shift towards a more equitable pricing structure that benefits all stakeholders in the industry. Images: Instagram

Money & Banking

Amazing money-saving hack hidden in Coles and Woolies Christmas shopping bags

Woolworths and Coles have released specially designed paper bags ahead of the Christmas period, with many praising their multi-purpose usage. The 25 cent bags feature a Christmas design, and are meant to be cut open and reused as wrapping paper for Christmas presents. Shoppers have been sharing their delight at the discovery on social media, with many praising the supermarket giants for encouraging recycling. A member of the North Shore Mums Facebook group shared the revelation, writing, "PSA: the Christmas woolies bags are designed to be cut open and used as wrapping paper." Both Coles and Woolworths bags include cutting lines to help those planning to use them as wrapping this festive season. They added an edit to the post explaining the bags could also be cut into squares around the decorations and used as gift tags. Other alternatives to pricey wrapping paper include tea towels, paper that has been decorated by children in the family or making the most out of reusable gift bags which can be collected and saved for the next occasion. With many families anxious of excess spending during the festive period in the face of the ongoing cost of living crisis, the reusable bags are set to be a welcome hack for those trying to be money conscious this Christmas. Image credits: 9Honey <p style="box-sizing: border-box; margin: 16px 0px 20px; padding: 0px; border: 0px; font-family: 'Proxima Nova', system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue'; font-size: 18px; font-stretch: inherit; line-height: 28px; vertical-align: baseline; caret-color: #333333; color: #333333;"><span style="box-sizing: border-box; margin: 0px; padding: 0px; border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant-caps: inherit; font-stretch: inherit; line-height: inherit; vertical-align: baseline;">

Money & Banking

Coles and Woolies branded "price gougers" by disgruntled shopper

It's no secret that while millions of Aussies are struggling to put food on the table during the ongoing cost of living crisis, supermarket giants Coles and Woolworths are raking in record-breaking profits. While the unreasonable inflation of grocery prices is endlessly frustrating, it seems as though there's nothing everyday shoppers can do to avoid the price increases. But that didn't stop one frustrated Aussie from making a statement against the supermarket chains. The man from Sydney shared a video of him targeting Coles and Woolies shops in the Eastern Suburbs, as he chose to rephrase their taglines. Heading to a Woolies Metro in Bondi Junction, he printed on the logo, "The price gouge people", playing on their slogan of "The fresh food people". He then went to Coles in Rose Bay, reprinting their logo of the pointed down hand with the phrase, "Down, down, morality down", referencing the "down, down, prices are down" jingle. The posted a video of his antics to Instagram, captioning his antics, "So over this bull***t duopoly that Australia just puts up with for some reason. Using inflation as a smoke screen to rake in billions by price gouging people during a cost of living crisis." <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-permalink="https://www.instagram.com/reel/CwbFvB4hX0-/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/reel/CwbFvB4hX0-/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by NOTNOT (@notnotcamscott)</a> </div> </blockquote> "There’s a reason why Coles and Woolworths make double the profit margins of other supermarkets in comparable markets overseas. 2/3 domination of our market leaves battlers with no time to seek out alternatives, no choice but to give into their greed." The video was quickly met with a flood of support, with one person writing, "When you inevitably get a fine for this, please put up a GoFundMe on Reddit and I will donate to cover part of the cost. Thanks for doing something more people should be doing!" Another person wrote, "I love how you can hold some tools and wear high-vis and nobody blinks and eye in this country", while several more commenters dubbed the man a "legend". Speaking to <a href="https://au.news.yahoo.com/disgruntled-shopper-sabotages-woolworths-and-coles-signs-the-price-gouge-people-072137676.html" target="_blank" rel="noopener">Yahoo News</a>, Woolworths confirmed that the new signage had been removed from their Bondi store, and said they are committed to helping families during the cost of living crisis. "We're acutely aware of the pressure that's being placed on Australian families through cost of living increases, whether they are our customers or our team members," a spokesperson said. "And we're doing more everyday to help customers spend less with us." A spokesperson for Coles also told Yahoo, "We know cost-of-living pressures are front-of-mind for our customers and are always looking for ways to help their dollars stretch further. This week, Coles announced it will bring down the price of more than 500 products for at least three months." "We value feedback from our customers, and encourage them to let us know about their shopping experience through our normal feedback channel – Tell Coles – or through our dedicated customer care team." Image credits: Instagram

Legal

Junk fees and drip pricing: the underhanded tactics we hate yet still fall for

<a href="https://theconversation.com/profiles/ralf-steinhauser-1459112">Ralf Steinhauser</a>, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a> You see a fantastic offer, like a hotel room. You decide to book. Then it turns out there is a service fee. Then a cleaning fee. Then a few other extra costs. By the time you pay the final price, it is no longer the fantastic offer you thought. Welcome to the world of drip pricing – the practice of advertising something at an attractive headline price and then, once you’ve committed to the purchase process, hitting you with unavoidable extra fees that are incrementally disclosed, or “dripped”. Drip pricing – a type of “junk fee” – is notorious in event and travel ticketing, and is creeping into other areas, such as movie tickets. My daughter, for example, was surprised to find her ticket to the Barbie movie had a “booking fee”, increasing the cost of her ticket by 13%. It seems like such an annoying trick that you may wonder why sellers do it. The reason is because it works, due to two fundamental cognitive biases: the way we value the present over the future; and the way we hate losses more than we love gains. <h2>Present bias preference: why starting over feels too costly</h2> In the case of booking that hotel room, you could abandon the transaction and look for something cheaper once the extra charges become apparent. But there’s a good chance you won’t, due to the effort and time involved. This is where the trap lies. Resistance to the idea of starting the search all over again is not simply a matter of laziness or indecision. There’s a profound psychological mechanism at play here, called a present-bias preference – that we value things immediately in front of us more than things more distant in the future. In their seminal 1999 paper, <a href="https://doi.org/10.1257/aer.89.1.103">Doing it now or later</a>, economists Mathew Rabin and Ted O'Donoghue define present-biased preference as “the human tendency to grab immediate rewards and to avoid immediate costs”. They give the example of choosing between doing seven hours of unpleasant activity on April 1 or eight hours two weeks later. If asked about this a few months beforehand, most people will choose the earlier option. “But come April 1, given the same choice, most of us are apt to put off work till April 15.” In simple terms, the inconvenience and effort of doing something “right now” often feels disproportionately large. Drip pricing exploits this cognitive bias by getting you to make a decision and commit to the transaction process. When you’re far into a complicated booking process and extra prices get added, starting all over again feels like a burden. Often enough, this means you’ll settle for the higher-priced hotel room. <h2>Loss aversion: buying more expensive tickets</h2> Beyond the challenge of starting over, there’s another subtle force at work when it comes to our spending decisions. Drip pricing doesn’t just capitalise on our desire for immediate rewards; it also plays on our innate fear of losing out. This second psychological phenomenon that drip pricing exploits is known as loss aversion – that we feel more pain from losing something than pleasure from gaining the same thing. The concept of loss aversion was first outlined by economists Daniel Kahneman and Amos Tversky in <a href="https://www.jstor.org/stable/1914185">a 1979 paper</a> that is the third most-cited article in economics. <hr /> <figure class="align-center "><img src="https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=497&fit=crop&dpr=1 600w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=497&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=497&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=624&fit=crop&dpr=1 754w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=624&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/543635/original/file-20230821-25-mca6ku.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=624&fit=crop&dpr=3 2262w" alt="A graphic representation of loss aversion. The pain from losing a good or service will be greater than the pleasure from gaining the same good or service." /><figcaption>How economists Daniel Kahneman and Amos Tversky graphically represented loss aversion. The pain from losing a good or service is greater than the pleasure from gaining the same good or service. Daniel Kahneman and Amos Tversky, Prospect Theory: An Analysis of Decision under Risk, Econometrica, Vol. 47, No. 2</figcaption></figure> <hr /> Drip pricing exploits this tendency, by dragging us away from more “rational” choices. Imagine you’re booking tickets for a show. Initially attracted by the observed headline price, you are now presented with different seating categories. Seeing the “VIP” are within your budget, you decide to splurge. But then, during the checkout process, the drip of extra costs begins. You realise you could have opted for lower-category seats and stayed within your budget. But by this stage you’ve already changed your expectation and imagined yourself enjoying the show from those nice seats. Going back and booking cheaper seats will feel like a loss. <h2>Do consumers need protection?</h2> Empirical evidence supports the above theoretical predictions about the impact of drop pricing on consumers. <a href="https://doi.org/10.1002/mar.21426">A 2020 study</a> quantified how much consumers dislike the lack of transparency in drip pricing (based on tracking the reactions of 225 undergraduates using fictional airline and hotel-booking websites). The authors liken the practice to the “taximeter effect” – the discomfort consumers feel watching costs accumulate. But drip pricing’s effectiveness from a seller’s perspective is undeniable. A <a href="https://doi.org/10.1016/j.jebo.2020.04.007">experimental study</a> published in 2020 found drip pricing generates higher profits while lowering the “consumer surplus” (the benefit derived from buying a product or service). A <a href="https://doi.org/10.1287/mksc.2020.1261">2021 analysis</a> of data from StubHub, a US website for reselling tickets, calculated drip pricing increased revenue by 20%. Which is why the tactic remains attractive to businesses despite customers disliking it. Buyers would benefit from a ban of drip pricing. Many countries are taking steps to protect consumers from drip pricing. The UK government, for example, announced a <a href="https://www.theguardian.com/business/2023/aug/21/growth-of-airlines-add-on-fees-sparks-calls-for-price-reforms">review of drip pricing</a> in June, with Prime Minister Rishi Sunak flagging the possibility of measures to curb the practice. The US government is also considering <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/06/15/president-biden-recognizes-actions-by-private-sector-ticketing-and-travel-companies-to-eliminate-hidden-junk-fees-and-provide-millions-of-customers-with-transparent-pricing/">new regulations</a>, with President Joe Biden denouncing “junk fees” in his <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/02/07/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery/">2023 State of the Union address</a>. Proposed changes include requiring airlines and online booking services to disclose the full ticket price upfront, inclusive of baggage and other fees. The effectiveness of measures, however, is <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4430453">still being debated</a>. In the meantime, your principal protection is making a more informed decision, by understanding why the tactic works. Bargains may attract you, but you can learn to not fall for hidden costs and align your choices with your budget and values.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/211117/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ralf-steinhauser-1459112">Ralf Steinhauser</a>, Senior Research Fellow, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/junk-fees-and-drip-pricing-the-underhanded-tactics-we-hate-yet-still-fall-for-211117">original article</a>.

Money & Banking

Coles praised for helping small town through cost of living crisis

Coles has been praised for the innovative way they are helping a small Aussie town to combat the ongoing cost of living crisis. The supermarket giant has started contributing to a community pantry in the coastal town of Ulladulla, 200km south of Sydney, which gives struggling locals basic grocery staples. The Little Free Food Pantry in Ulladulla was set up by local woman Coralie Smith and her mother Melissa, who were on a mission to reduce food waste, while also give back to their community as the cost of living continues to take hold. The motto "take what you need, give what you can" is plastered along the top of the pantry, set up outside the local scout hall, designed for people to help themselves to food to feed their families. Most of the food in the community cupboard has been donated by the local Coles supermarket, which provides a range of baked items, meats and fresh produce daily. Woolworths has also contributed items to the pantry every week, while also being topped up by generous locals. One local woman named Michelle has been using the service for almost three months. Before the pantry was established, Michelle was only able to afford to eat just one meal a day. "I'm working three jobs because of the high interest rates and the cost of living," she told Yahoo News Australia. "When I collected my first hamper all I could do is cry". The first time she was offered food she felt extremely "overwhelmed" but "now I'm definitely eating more, and am able to keep up with my mortgage and bills". Image credits: Facebook / Shutterstock

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Restaurant charges diners $95 to slice up birthday cake

Australia's cheapest supermarket revealed

“Makes me proud”: Coles applauded for Anzac Day display

The secret sauce of Coles’ and Woolworths’ profits: high-tech surveillance and control

Coles shopper humiliated after being accused of shoplifting

Disabled customer "crushed" by Coles' new smart gate

Coles shopper admits to stealing to feed her family amid cost of living crisis

"Dead dodgy": Outraged shopper uncovers sneaky Coles practice

Inside Aussie couple's Coles wedding

Jacqui Lambie fires up on Coles and Woolies

Fed up farmer blasts major supermarkets for price gouging

Amazing money-saving hack hidden in Coles and Woolies Christmas shopping bags

Coles and Woolies branded "price gougers" by disgruntled shopper

Junk fees and drip pricing: the underhanded tactics we hate yet still fall for

Coles praised for helping small town through cost of living crisis

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