The Price is Wrong! Gouging, Shrinkflation and Consumer Law

That was the focus of our recent Law and You Forum, The Price is Wrong! Gouging, Shrinkflation and Consumer Law. Hosted by Victoria Law Foundation Executive Director Lynne Haultain, the forum brought together perspectives from regulation, research and frontline support to explore how consumer law works in everyday life, and why getting a fair outcome can still feel difficult.

A problem many people recognise

Most of us have had a consumer problem. It can be a faulty product, poor service, a confusing price, or a subscription that is too hard to cancel. These issues are common, but they can still be stressful, time-consuming and difficult to resolve.

As attendees at the Wheeler Centre and online shared, these pressures feel sharper when household budgets are stretched. Many people are changing how they shop, delaying purchases, or feeling guilt and pressure around everyday spending.

Financial counsellor Josh Barnes from Meli described what this looks like on the frontline, with more people, including people in work, seeking help because “their money is no longer stretching far enough”. Short-term fixes such as buy now, pay later products may offer immediate relief, but can add to pressure over time.

Josh also joined a lively round of “guess the price” using everyday groceries. It was a simple reminder of how hard it can be to judge prices accurately, with the online audience adding their guesses through a poll. Together, the group managed to put the items in the correct order from lowest to highest.

How the law helps, and where it can’t

One of the clearest themes from the forum was that having rights is not always the same as being able to use them.

Australia’s consumer protection framework gives people important safeguards, including rights to refunds, repairs or replacements under the Australian Consumer Law. It also prohibits misleading or deceptive conduct. But these protections can still be hard to understand and use, even for people familiar with the system.

Many people see price gouging as unfair. But as Consumer Affairs Victoria’s Timothy Stargatt explained, a high price on its own is not always clearly unlawful. Whether the law applies often depends on what else has happened, such as whether a business has misled a consumer or acted unconscionably.

Even when rights are clear, acting can be difficult. Complaints take time and persistence, and people may need to navigate different regulators, ombudsmen or tribunals. Some processes involve costs, and delays can stretch for months or longer.

Research insights shared at the forum highlighted another common barrier. People may not raise an issue if they are not confident it will be resolved. As we know from the Public Understanding of Law Survey, confidence and trust are important parts of legal capability and can shape whether people receive a fair outcome.

‍

A system trying to keep up

Panellists also pointed to pressure across the consumer system. Demand for help is increasing, support pathways can feel fragmented, and the way people buy goods and services is changing quickly.

Subscription models, digital platforms and larger market players can make it harder to understand options or challenge poor practice. The discussion also touched on planned obsolescence and shrinkflation, where products change in size, quality or lifespan in ways that are not always easy to spot.

Across these issues, a consistent message emerged. The law provides an important foundation, but it does not always keep pace with how markets work or how people experience problems. Drawing on Consumer Policy Research Centre data, Erin Turner noted that some simple complaints can run for up to five years. As she put it, “they shouldn’t be so hard to resolve, and it points to some gaps where our consumer law might be good on paper, but it can be really hard to use.”

Practical steps people can take

The forum also highlighted practical steps that can help.

A good first step is to contact the business directly. Keep records, explain the problem clearly, and be specific about the outcome you want. If that does not resolve the issue, you may be able to escalate the complaint to Consumer Affairs Victoria or a relevant ombudsman.

Acting early can also help stop a consumer problem becoming a larger legal or financial problem.

What needs to improve

The forum ended by asking what would make the system work better for people. Suggestions included clearer protections against unfair practices, simpler and more consistent complaint pathways, and better information to help people understand their rights and risks.

Across the discussion, what stood out was that consumer law matters, and matters most when people can use it in everyday life.

Watch the full forum