Woolworths' Everyday Rewards tactic branded 'black and white' price gouging

Woolworths has been accused of "sinking to new lows" after one Aussie shopper exposed what he said is "black and white price gouging", showing a side-by-side comparison of a product's ordinary price, compared to what members pay, which is half of that.

The Sydney man said this exposes what he believes is a perfect example of price gouging, highlighting the fact that Woolworths can afford to sell the product for the lower price, that it offers to its members, but chooses to sell it for the inflated price, for those who "don't want to hand their details" over to the company to sign up for Everyday Rewards.

The product in question is a 1L bottle of Dove body wash, which is listed for $17 (currently on sale for $11.90), but for those with an Everyday Rewards account, it's marked as $8.50. The Sydney man's post to TikTok attracted an onslaught of responses, with many people agreeing with the shopper.

Shopper says members' price difference is 'price gouging'

One woman responded: "No matter how you look at it, half-price just admits that the full price is a gouging". That comment attracted over 1500 likes.

Others debated signing up for Woolworths' Everyday Rewards program, though several questioned whether they'd feel comfortable with the supermarket giant having access to some of their personal details. Some people simply didn't understand the privacy concerns, asking "what's the big deal?".

"If they want to breach my privacy about buying broccoli, pads, bread and milk they can have it," a woman said. "What info do you have on there that you don’t want them to see?" said another.

Woolworths responds

When Yahoo News questioned Woolworths on its members' pricing strategy, the company said it acknowledges Australian families are doing it tough and it is doing "more everyday to help customers spend less with us".

"Our Everyday Rewards program helps members save hundreds of dollars every year by scanning their card and boosting offers," an Everyday Rewards spokesperson said.

"Member Pricing is another example of the benefits of being an Everyday Rewards member. Outside of our Everyday Rewards program, Woolworths has thousands of products on special every week."

• Woolworths worker sacked for pushing shoplifter highlights disturbing trend

• Woolworths shoppers urged to boycott store over 'frustrating' issue: 'It's their mistake'

• Hack scoring Woolworths Everyday Rewards customers points and freebies

Expert weighs in on price accusations

Speaking to Yahoo News Australia, Finder's consumer expert Taylor Blackburn agreed that Woolworths' pricing system is off-putting to some shoppers. But not all, he continued, pointing to recent research that found 89 per cent of Aussies are part of a loyalty program, with 71 per cent of those taking part in Woolworths Everyday Rewards.

"While it's fair to say that seven in 10 Aussies are getting the member price, $17 for soap would leave those who don't want to take part feeling dirty," Blackburn told Yahoo. "Member pricing has long been the carrot in the supermarket space, but in this case you could argue it is being used as a stick.

"Membership has its benefits, but this is a good reminder to stay vigilant, and know what things cost in the market. Especially on toiletries, you can often find these items for less at a chemist or online.

"Whether it's a litre of soap or 10GB of data on a mobile network, if you think you are paying too much, you are probably right."

Do you have a story tip? Email: newsroomau@yahoonews.com.

You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.