Australian supermarket giants face class action over ‘misleading’ discounts
Customers are taking on two of Australia’s biggest supermarket chains, alleging misleading and deceptive conduct over discounts on products.
The class action case filed by law firm Bannister Law on May 23 states that Coles and Woolworths are engaging in “systematic misleading conduct” on a range of products by advertising phony “half-price” deals.
The action argues the supermarkets are falsely inflating so-called “original” prices, then applying discounts to reach the actual price the products would normally sell for.
The lawsuit states the supermarket chains “regularly engage in the sale of products at a ‘half price’ discount, even though the products were never sold at the so-called ‘original prices’ that are used as a reference point for the discount.”
The lawsuit cites several examples, including a Woolworths pasta sauce promoted as “half price” for $2.70, despite it being sold for $2 just weeks earlier. Another example is Coles selling a packet of toilet paper for $12, claiming this is half price from its usual $24. However, the product had never sold for $24, with its regular price being $16.
Bannister Law alleges the supermarket chains deliberately inflate the regular price of products to create the illusion of a genuine discount and “boost sales.”
The class action seeks compensation for all affected customers, which could amount to hundreds of millions of dollars.
This is not the first time Woolworths and Coles have been accused of misleading pricing. The Australian Competition and Consumer Commission (ACCC) investigated a similar case against the two chains in 2018 and found that they had been claiming discounts that were not true.
In that case, the ACCC found that Coles and Woolworths had “repeatedly engaged in misleading or deceptive conduct concerning the prices of their products” and agreed to pay a total of $10 million in penalties.
The current class action is a further sign that the issue of supermarket discounts is still a concern for consumers. If you have been affected by misleading supermarket discounts, you may be eligible to join the class action case.
