Unit pricing: a guide for
grocery retailers
Australian Competition and Consumer Commission
23 Marcus Clarke Street, Canberra, Australian Capital Territory, 2601
First published by the ACCC 2010
10 9 8 7 6 5 4 3 2 1
© Commonwealth of Australia 2010
This work is copyright. Apart from any use as permitted under
the Copyright Act 1968, no part may be reproduced without prior
written permission from the Commonwealth available through the
Australian Competition and Consumer Commission. Requests and
inquiries concerning reproduction and rights should be addressed
to the Director Publishing, Australian Competition and Consumer
Commission, GPO Box 3131, Canberra ACT 2601 or by email to
publishing.unit@accc.gov.au.
Important Notice
This publication has been updated to refer to the Competition
and Consumer Act 2010 which replaces the Trade Practices Act
1974 on 1 January 2011. For more information on the Australian
Consumer Law changes see www.consumerlaw.gov.au
This publication gives you basic information. It does not cover the
whole of the Australian Consumer Law (ACL) and is not a substitute
for professional advice.
Because it avoids legal language where possible, there may be
some generalisations about the application of the ACL. Some of the
provisions referred to have exceptions or important qualifications. In
most cases the particular circumstances of the conduct need to be
taken into account when determining the application of the ACL.
ISBN 978 1 921887 02 4
ACCC 11/10_37527_182
www.accc.gov.au
Unit pricing: a guide for
grocery retailers
Contents
Unit pricing—what you need to know at a glance
2
Introduction—what is unit pricing?
5
Do the unit pricing rules affect me?
7
What unit pricing information must I display?
9
What things do not have to be unit priced?
13
How should unit pricing information be displayed?
16
Do I need to display unit pricing in my advertising?
18
What if I don’t display unit pricing information?
19
Appendix20
Contacting the ACCC
22
Unit pricing: a guide for grocery retailers
1
Unit pricing—what you
WHAT is unit pricing?
Unit pricing means displaying the price of a grocery item as a standard unit of measurement alongside
its selling price. Different types of grocery items use different measurements. For example, the label for
a 500 millilitre bottle of milk would show the unit price per litre, in addition to the selling price.
MILK 500 mL
IIIIIIII II IIIIII
$1.00ea
$2.00 per L
Unit pricing allows consumers to quickly compare the value of products of varying size and brands.
The unit pricing requirements are set out in the Trade Practices (Industry Codes—Unit Pricing) Regulations
2009 (the code), which came into effect in July 2009. The Trade Practices Act 1974 under which the code
was introduced via regulation has been renamed the Competition and Consumer Act 2010 (the Act).
The code affects businesses (‘retailers’) that sell food-based groceries to consumers. Any business that
displays unit pricing must do so in accordance with the code.
WHO has to display unit pricing?
Unit pricing is mandatory for:
1.Retailers:
o whose retail premises are used primarily for the sale of food-based grocery items, and
o have floor space greater than 1000 square metres dedicated to the display of grocery items, and
o sell the minimum range of food-based grocery items.
2.Online retailers that sell the minimum range of food-based grocery items.
Under the code these retailers are called prescribed grocery retailers.
WHO can display unit pricing if they want to?
Retailers that sell the minimum range of food-based groceries, but have a floor
space of 1000 square metres or less can opt in to unit pricing in accordance with
the code.
Retailers opt in to the code if they introduce in-store unit pricing for one or
more types of non-exempt grocery items.
Under the code, retailers that opt in are participating grocery retailers
and must comply with all the code’s requirements.
2
Unit pricing: a guide for grocery retailers
need to know at a glance
WHAT grocery items do I have to show unit pricing for?
All grocery items, including some non-food items, must be unit priced except for those
that are:
o on the list of exempt items
o sold at a reduced price due to damage or their perishable nature
o offered for sale as a bundle of different types of items for a single price; the
items don’t have to be packaged together
o discontinued items.
WHERE do I have to display unit pricing?
Unit pricing must be displayed:
o where a selling price is displayed for a grocery item—this includes labels
and promotional signs
o in print advertisements where a selling price is listed
o in online store price lists.
Unit pricing doesn’t apply to non-print advertising, such as television, radio
or online audio or video advertising.
HOW must unit pricing information look?
Unit pricing information must be:
o prominent—it must stand out so that it is easily seen
o proximate—it must be positioned close to the selling price for the grocery item
o legible—it must not be difficult to read
o unambiguous—the information must be accurate and its meaning clear.
Unit pricing: a guide for grocery retailers
3
Introduction—
what is unit pricing?
Unit pricing means displaying the price of grocery items for a certain unit of measurement in
addition to the item’s selling price.
These regulations are contained in the Trade Practices (Industry Codes—Unit Pricing)
Regulations 2009.
The code sets out how items must be unit priced.
Displaying information in this way (for instance, displaying an item’s price per 100 grams
of weight) makes it easy for consumers to compare the price and value of similar types of
products.
For example, with unit pricing a consumer does not have to make complicated calculations
to work out which is better value: a 2.5 litre container of laundry detergent costing $7.62 or a
1.5 litre container costing $5.74.
LAUNDRY DETERGENT
2.5 L
$
7.62
LAUNDRY DETERGENT
1.5 L
$
5.74
$3.05 per 1 L
$3.83 per 1 L
Unit price
Unit price
This is because they can easily see that the unit price of the first container is $3.05 per litre
and $3.83 per litre for the second. The information will be displayed with the item’s selling
price on the shop label.
Not all businesses are required to display unit pricing. Whether your business must display unit
pricing depends on the size and type of your shop and the types of grocery items that you sell.
If you do not sell the minimum range of groceries or don’t primarily sell food-based groceries,
you do not have to display unit pricing for grocery items.
Unit pricing: a guide for grocery retailers
5
Some categories of grocery retailers can opt in to the scheme. If they do, they must
comply with all of the code’s requirements—that is, they must display unit pricing strictly in
accordance with the code.
Also, some kinds of grocery items are exempt from unit pricing.
This guide aims to help your business understand unit pricing and what you will need to do to
comply with the code. It offers detailed guidance on:
o whether your business will need to display unit pricing
o how you should display unit pricing, including in advertising and product labelling
o items that are exempt from unit pricing
o unit measurements used for different types of goods.
6
Unit pricing: a guide for grocery retailers
Do the unit pricing rules
affect me?
The code covers certain businesses (retailers) that sell food-based grocery items to
consumers.
Who must display unit pricing?
Unit pricing is mandatory for:
1.Retailers:
o whose retail premises are used primarily for the sale of food-based grocery items, and
o have floor space greater than 1000 square metres dedicated to the display of grocery
items, and
o sell the minimum range of food-based grocery items.
2.Online retailers that sell a minimum range of food-based groceries.
These retailers are called prescribed grocery retailers under the code. It is mandatory for
businesses in either of these groups to display unit prices for items wherever they display a
selling price.
If you belong to one of these groups, you must display unit prices.
Other retailers that can choose to display unit pricing
Grocery retailers that sell the minimum range of food-based grocery items but have a floor
space of 1000 square metres or less can choose to either opt in to the code, or not participate
at all.
If you opt in, you become a participating grocery retailer under the code and you must
comply with all of the requirements in the code.
How do I opt in to the code?
You opt in to the code if you introduce unit pricing in store for more than one type of
non‑exempt grocery items.
Unit pricing: a guide for grocery retailers
7
You have not opted in if:
o you display unit prices to comply with other mandatory legislation (such as trade
measurement legislation)
o you only display unit pricing in advertising (but not in your shop or on your website)
o you do not sell the minimum range of food-based grocery items.
What happens if I opt in but later decide I want to stop displaying unit prices?
The code will no longer apply to you if, at any time, you stop displaying unit pricing for all
grocery items covered by the code (except for those grocery items which are required to be
unit priced under other mandatory legislation).
What is the minimum range of food-based groceries?
Under the code, you sell the minimum range of food-based grocery items if you sell all the
following types of groceries:
o bread
o flour
o rice
o breakfast cereal
o fresh fruit and vegetables
o sugar
o butter
o fresh milk
o eggs
o meat
o packaged food that is
not otherwise on this list.
If you don’t sell all of these food types, the code does not apply to you.
Floor space
Under the code, floor space means the continuous, internal floor area of your premises.
Floor space does not include areas for consuming food or drinks (such as cafe areas).
8
Unit pricing: a guide for grocery retailers
What unit pricing
information must I
display?
To ensure that consumers can easily find and understand the unit price of different groceries,
the code has rules about the kind of information that must be displayed and how it must be
displayed.
Measurement units
The code sets out the unit measurements that must be used for each kind of grocery item.
Some specific categories of grocery items use non-standard measurement units, but most
use standard measurement units.
Tables 1 and 2 show the measurement units to be used for unit pricing different kinds of
grocery items.
Table 1: Non-standard measurement units for specific grocery types
Grocery category
fruit and vegetables (including
mushrooms)
This category includes any fruit,
vegetable or mushroom that is
fresh, frozen, dried, canned or prepackaged
meat (including poultry, seafood and
smallgoods)
This category includes any meat that
is fresh, frozen, dried, canned or
otherwise pre-packaged.
beverages (including beverage
concentrates)
Unit of measurement
(a) per item included, or
(b) if supplied by weight—per kilogram
(a) per item included, or
(b) if supplied by weight—per kilogram
per litre
Unit pricing: a guide for grocery retailers
9
Grocery category
Unit of measurement
cheese
per kilogram
packaged eggs
per 100 grams
flour
per kilogram
herbs
per 10 grams
powdered sauce and stock
per 10 grams
spices
per 10 grams
ice
per kilogram
flavouring essences
per 10 millilitres
food colouring
per 10 millilitres
(a) per item included, or
make-up
(b) if sold by weight—per 10 grams, or
(c) if sold by volume—per 10 millilitres
(a) if supplied by continuous length—per metre, or
products supplied on a roll (including
toilet paper)
air fresheners
products supplied by number
in packages of 41 or more items
laundry supplies (including washing
powders and liquids, fabric softeners
and fabric bleach)
(b) if there are 40 or fewer items (including sheets)
on the roll—per item included, or
(c) if there are 41 or more items (including sheets)
on the roll—per 100 items
(a) per item included, or
(b) if supplied by volume—per 10 millilitres
per 100 items
(a) per item included, or
(b) if supplied by weight—per kilogram, or
(c) if supplied by volume—per litre
(a) per item included, or
pet products (other than pet food)
(b) if supplied by weight—per kilogram, or
(c) if supplied by volume—per litre
Groceries not listed above must use the most relevant of the following standard units.
If there is a unit of measurement displayed on the packaging for a grocery item, that
unit is the most relevant and should be used in the unit price.
10
Unit pricing: a guide for grocery retailers
Table 2: Standard unit pricing measurements
grocery items supplied by volume
per 100 millilitres
grocery items supplied by weight
per 100 grams
grocery items supplied by length
per metre
grocery items supplied by area
per square metre
per item
grocery items supplied by number
(a) where the unit price per item must be
displayed, the kind of grocery item may
be referred to in the unit price—for
example, $1.52 per nappy
(b) grocery items usually supplied as a
pair—for example rubber gloves—are
considered one item for the purposes of
the code
Products supplied by two different
measurements—for example, by
number and weight
If packaging for a grocery item has more than one unit
of measurement, use the unit the product is most often
supplied by.
For example, a brand may sell taco shells both by number
supplied in a pack (a box of 10 shells) or by weight (200 grams).
If taco shells are most often supplied by the number of shells,
they should be unit priced per shell.
2 L orange ju
4
ice
$ .57
Buy two for th
e
price of one!
Items that are the same, offered
together for a single price
(including ‘two for one’ offers)
$1.14 per L
Where two or more of the same items from a particular product
range are offered together at a discount, the unit price must be
displayed wherever the selling price is stated.
Unit pricing must be displayed
where two or more of the same
grocery items are offered for a
single price
For example, a supermarket promotes an offer where
consumers can buy ‘five 400 g cans of X Brand tomato soup
for $8.00’. The unit price of $0.40 per 100 g must be displayed
in any catalogue or in‑store signage where the selling price is
stated.
Unit pricing: a guide for grocery retailers
11
Consistency with other pricing
practices
Buy 4 tins for
3
$ .50
$7.00 per kg
oil
125 g sardines in
Unit pricing must be displayed where
two or more of the same grocery
items are offered at a single price.
12
Unit pricing: a guide for grocery retailers
If you sell two or more of the grocery categories in
Table 1 that are supplied by number (or on a roll),
you may use the unit of measurement that you
are most often required to use when unit pricing
these goods.
For example, a retailer mainly sells nappies in
quantities greater than 50 but also sells a few
in smaller packs of 20 nappies. Normally, the
20‑packs would have to be unit priced per nappy.
However, because this retailer is most often required
to display the unit price per 100 nappies (for the
larger packs), the retailer can choose to display the
per 100 nappies unit price on the smaller pack.
What things do not have
to be unit priced?
Certain categories of goods, as well as goods that are part of certain promotional offers, are
exempt from the requirements of the code. You do not have to display unit prices for them.
List of exempt grocery categories
o books, magazines and stationery
o sports and camping equipment
o optical discs and magnetic storage
devices used for computing, sound
reproduction or video, whether or not
they are pre-loaded with content
o toys
o photography items and equipment
o electrical items (other than batteries and
light bulbs)
o garden tools and items for garden or
pool maintenance or decoration
o household appliances and kitchen and
bathroom utensils
o clothing, jewellery and other fashion
items (other than make-up)
o services, and goods supplied as part of
providing a service, including mobile
phone recharges
o goods for hire
o flowers, including fresh, dried and
imitation flowers
o cigarettes and other tobacco products,
including nicotine replacement products
o furniture
o alcoholic beverages
o hardware items
o haberdashery
o manchester
o items sold from vending machines
o computer equipment
o meals prepared at the retail premises for
immediate consumption.
o audio-visual equipment
o telecommunications items or equipment
o items for motor vehicle maintenance
or repair
Unit pricing: a guide for grocery retailers
13
Bundled products
All 3 items for
8
$ .49
Bundled grocery packs
Groups of different grocery items that are sold
together (or ‘bundled’) for a single price do not have
to be unit priced.
The items do not have to be packaged together for
this exemption to apply.
For example, an offer where you can buy a
packet of frozen potato chips and a separate
packet of frozen fish fillets together for a single
price would constitute a bundled grocery pack so
you don’t need to display a unit price where the
representation about the bundle’s price is made.
Save $3.50
o
Dental Floss
* Dental floss 45
m * Toothpaste
110 g
* Mouthwash 50
0 mL
Bundles of different kinds of grocery
items do not require unit pricing
Promotions where different items are
offered at the same price
In an offer where a consumer can buy one of a
range of different items for a single price, you are
not required to display unit pricing if the price
remains constant.
All lipsticks
5
$ .5e0a
Wide range
Unit pricing is not required where
similar items of different sizes and
weights are sold at a single price.
14
Unit pricing: a guide for grocery retailers
For example, in an offer where a consumer can buy
any one of a range of chocolate bars of different
kinds and weights for $1.50, you are not required to
display a unit price, only the selling price.
Marked down products
Perishables
Items such as meat and dairy products that are marked down from their usual price because
they are getting close to their use-by date don’t need to be unit priced.
Damaged goods
Items that are damaged or have their packaging damaged and are marked down from their
usual price do not need to be unit priced.
Discontinued items
Items that are sold at a discount because they have been discontinued are exempt from
the code, and do not have to be unit priced.
Unit pricing: a guide for grocery retailers
15
How should unit
pricing information be
displayed?
The code contains general rules to ensure that unit pricing is accurate, clear, easy to locate
and easy to understand. It also contains some specific rules about how prices must be
displayed.
General rules
There are four main rules that apply to every situation where unit pricing information is
displayed.
The unit price for a grocery item must be:
o prominent—it must stand out so that it is easily seen
o proximate—it must be close to the selling price for the grocery item
o legible—it must not be difficult to read
o unambiguous—the information must be accurate and its meaning must be clear.
Where the unit price is $1.00 or more
If a unit price is $1.00 or more, the unit price must be displayed in dollars and whole cents.
For example, the unit price for a kilogram of oranges is $3.00 per kilo. This must be
displayed as:
ORANGES
2 kg bag
IIIIIIII II IIIIII
16
Unit pricing: a guide for grocery retailers
$6.00ea
$3.00 per kg
Where the unit price is less than $1.00
If a unit price is less than $1.00, the unit price must either be:
In dollars and whole cents. For example:
YOGHURT
1 kg
$4.40ea
IIIIIIII II IIIIII
$0.44 per 100 g
YOGHURT
$4.40ea
OR
In whole cents:
1 kg
IIIIIIII II IIIIII
44c per 100 g
Where the selling price is the same as the unit price
In this case, the unit price should still be displayed in the same way as in the examples above.
Rounding unit prices
Unit prices must be worked out to the nearest 1 cent. Any part cents of 0.5c or greater should
be rounded up to the nearest 1 cent.
For example, if you calculate the unit price for a can of soup at $0.515 per 100 g (without
rounding), the unit price must be displayed as $0.52 per 100 g.
If the unit price was $0.514 per 100g without rounding, it must be displayed as
$0.51 per 100 g.
Unit pricing: a guide for grocery retailers
17
Do I need to display unit
pricing in my advertising?
Print advertising
If you are required to display unit pricing in your shop (or on your website) you must also
display it in any print advertising—for example, in catalogues and newspaper advertisements.
The code’s rules about what information must be displayed and how it must be displayed
(covered on pp. 16–17) also apply to print advertisements.
Television, radio and other electronic media
(apart from websites)
You are not required to display or state unit pricing for grocery items in television, radio or
other electronic advertising (apart from websites).
Website and online advertising
If you are required to display unit pricing for products in your shop, you must also display a
unit price for these products in online advertisements, including websites, where a selling price
is listed.
The exception is video files that are similar to television advertisements or audio files that are
similar to radio advertisements. These do not require unit pricing.
18
Unit pricing: a guide for grocery retailers
What if I don’t display
unit pricing information?
The code is a legally binding set of regulations. This means that if you don’t comply with the
rules in the code, you will breach the Act and you may face serious consequences.
Legal action by the ACCC or other affected parties
The ACCC, or any other affected parties, can institute legal proceedings against you if you
breach the code.
The Act provides for a number of sanctions and orders including:
o injunctions to stop the conduct
o compensation and damages
o setting aside or varying relevant contracts
o orders for corrective advertising
o for conduct that also breaches any of the criminal provisions of the Act, fines of up to
$1.1 million for companies and $220 000 for individuals.
The Act also provides for the ACCC to accept court-enforceable undertakings in appropriate
circumstances.
What should I do if I believe I am not complying with the
unit pricing code?
If you believe you may be in breach of the code, you should:
o seek professional advice on whether you are in breach of the Act
o take steps to comply with the code
o review how the breach came about
o put in place an effective compliance program to avoid future recurrences.
Unit pricing: a guide for grocery retailers
19
Appendix
Who must display unit pricing
information?
Store-based
retailers
Do you
primarily sell
food-based
groceries?
Do you sell all these types of
groceries?
Yes
• bread
• flour
• rice
• breakfast
cereal
• fresh fruit and
vegetables
• sugar
No
• eggs
• meat
• butter
• fresh milk
• packaged
food that is not
otherwise on
this list
No
The code does not apply to you. You are not required to
display unit prices for any items (except those where unit
pricing is required under other mandatory legislation).
No
Online
retailers
20
Do you sell all these types of groceries?
• bread
• flour
• rice
• breakfast
cereal
• fresh fruit and
vegetables
• sugar
Unit pricing: a guide for grocery retailers
• eggs
• meat
• butter
• fresh milk
• packaged food that
is not otherwise on
this list
Yes
Does your store
have greater than
1000 m2 floor
space dedicated
to the display of
groceries?
Yes
Unit pricing in accordance with the code is
mandatory for your business.
No
You can choose to opt in to the code, or nor participate at all.
You opt in by displaying in-store unit pricing information for any non-exempt grocery items.
Retailers that opt in must comply with all the code’s mandatory requirements.
Yes
Unit pricing in accordance with the code is mandatory for your business.
Unit pricing: a guide for grocery retailers
21
Contacting the ACCC
ACCC unit pricing hotline: 1300 746 245
Infocentre: 1300 302 502
Callers who are deaf or have a hearing or speech impairment can contact the ACCC through
the National Relay Service (NRS): www.relayservice.com.au
Voice-only (speak and listen) user, call: 1300 555 727 and ask for 1300 302 502
For information in languages other than English, call: 131 450 and ask for 1300 302 502
Indigenous infoline: 1300 303 143
Small business helpline: 1300 302 021
For other business information go to: www.business.gov.au
Website: www.accc.gov.au
22
Unit pricing: a guide for grocery retailers
Unit pricing hotline 1300 746 245
www.accc.gov.au