Coles and Woolies hit with class action over alleged dairy price fixing: 'The average Australian consumer could be eligible for a refund'

Background

A class action lawsuit has been launched against supermarket giants Coles and Woolworths, alleging they engaged in anti-competitive conduct by fixing the price of milk and other dairy products.

The lawsuit, filed in the Federal Court of Australia, alleges that Coles and Woolworths colluded to fix the price of milk and other dairy products, resulting in inflated prices for consumers.

The lawsuit is being led by law firm Maurice Blackburn, which alleges that the supermarket giants engaged in "cartel conduct" by sharing commercially sensitive information and agreeing to set prices.

Details of the allegations

The lawsuit alleges that Coles and Woolworths engaged in anti-competitive conduct over a period of several years.

The lawsuit alleges that the supermarket giants exchanged information about their pricing plans and agreed to set prices at a certain level.

The lawsuit also alleges that Coles and Woolworths used their market power to pressure suppliers to raise their prices.

Impact on consumers

The lawsuit alleges that the alleged price fixing has had a significant impact on Australian consumers.

The lawsuit alleges that consumers have been paying inflated prices for milk and other dairy products as a result of the alleged cartel conduct.

The lawsuit seeks compensation for consumers who have been overcharged for milk and other dairy products.

Response from Coles and Woolworths

Coles and Woolworths have denied the allegations made in the lawsuit.

Coles has stated that it "strongly refutes the allegations" and will "vigorously defend" the lawsuit.

Woolworths has stated that it "rejects the allegations" and will "defend the proceedings".

Next steps

The lawsuit is now before the Federal Court of Australia.

The court will need to decide whether to allow the lawsuit to proceed to trial.

If the lawsuit is allowed to proceed to trial, it could take several years to reach a conclusion.

Conclusion

The class action lawsuit against Coles and Woolworths is a significant development in the Australian competition law landscape.

The lawsuit alleges that the supermarket giants engaged in anti-competitive conduct that has had a significant impact on Australian consumers.

The lawsuit is now before the Federal Court of Australia, which will need to decide whether to allow the lawsuit to proceed to trial.