Coles Increases Price for Paper Bags to $2 with Updated 'Bagging Fee'

Coles has increased the bagging fee for online grocery orders from $1.50 to $2.00 per order, adding an extra $0.50 charge for customers shopping through its online platform.

The change took effect last Monday and applies at checkout for online purchases. A spokesperson for Coles Group said the updated fee is part of a recent review and is displayed before customers complete their order.

Customers using selected delivery options can avoid the charge by choosing a bagless delivery service.

The increase comes as the supermarket chain continues to face higher operating expenses. Earlier this year, Coles reported sales of A$9.8 billion for the three months to March. Chief executive Leah Weckert said the retailer had experienced rising supplier costs, particularly across fuel, freight and packaging.

The fee adjustment also follows a recent Federal Court ruling against Coles over its pricing practices. The court found the retailer had engaged in misleading discount advertising through its “Down Down” campaign.

Justice Michael O'Bryan ruled in favour of the case brought by the Australian Competition and Consumer Commission, which alleged some advertised discounts were not genuine.

The ruling has prompted discussion of potential compensation for affected shoppers, with reports indicating some customers could be eligible for class-action payouts.