The Australian Competition and Consumer Commission (ACCC) has launched legal proceedings against Woolworths and Coles, accusing the supermarket giants of misleading consumers with discount pricing claims.
According to the ACCC, the retailers allegedly advertised price drops on hundreds of products after temporary price spikes, which were higher than or equal to regular prices prior to the spikes.
The ACCC's investigation, spanning 20 months for Woolworths and 15 months for Coles, scrutinised products including household staples like Arnott's Tim Tams and Coca-Cola.
ACCC Chair Gina Cass-Gottlieb emphasised that these promotions were "illusory," alleging that price increases were strategically implemented to justify subsequent price drops.
Both supermarkets face allegations under the Australian Consumer Law that their practices could create false impressions among consumers.
The regulator seeks declarations, penalties, and other orders, including funding charitable meal deliveries.
In response, Coles defended its actions, citing cost pressures and its commitment to value for customers through its "Down Down" campaign. Woolworths said it would review the ACCC's case, maintaining its "Prices Dropped" initiative aimed at offering everyday value.
The court case highlights ongoing concerns over consumer protection and pricing transparency in Australia's retail sector, amid heightened inflation and political scrutiny ahead of the federal election.