Class lawsuit claims supermarkets misled customers on discounts, shoppers act

As the trusted voice for the over-60s community, we always seek news that could impact your wallet.

Today, we're announcing a significant development that could allow many of our members to reclaim a substantial sum of money.

A major class action lawsuit has been launched against the supermarket giants Woolworths and Coles, stirring up quite the conversation.


The legal action, filed by Gerard Malouf & Partners, stems from the Australian Competition and Consumer Commission (ACCC) investigation into supermarkets' pricing practices.

The heart of the matter lies in the claim that both Woolworths and Coles had engaged in deceptive pricing strategies that may have misled customers into believing they were receiving discounts on their purchases when, in fact, the savings were non-existent.


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Class action against Coles and Woolworths regarding deceptive pricing practices was launched. Credit: Unsplash


The lawsuit alleges that this conduct violated Australian Consumer Law and caused economic harm to consumers who paid inflated prices for products they thought were on special offer.

The potential payout for those affected by this alleged misconduct is not insignificant.

While the exact amount will vary from shopper to shopper, Gerard Malouf & Partners have indicated that compensation could range from $200 to over $1,300.


Meanwhile, Carter Capner Law, also pursuing the supermarkets, suggested that households could claim between $2,000 and $5,000, depending on the extent of the impact of the deceptive pricing.

The class action is a response to the ACCC's Federal Court action against Woolworths and Coles.

The ACCC has accused supermarkets of inflating the prices of specific products by at least 15 per cent while the purchase prices remained steady for extended periods.

These products were then allegedly included in the supermarkets' ongoing discount promotions—'Prices Dropped' for Woolworths and 'Down Down' for Coles—even though the promotional prices were reportedly higher than, or the same as, the previous regular prices.

You may be eligible if you shopped at Coles or Woolworths, in-store or online, between February 2022 and May 2023 and purchased products marked as 'Price Dropped' or 'Down Down'.


To express your interest in joining the class action, visit the links by Gerard Malouf & Partners for Coles and Woolworths or the link provided by Carter Capner Law.

The lawsuit will focus on four main components: deceptive pricing practices, violation of Australian Consumer Law, economic harm to consumers, and misrepresentation of savings.

The ACCC's chair, Gina Cass-Gottlieb, has emphasised that Australian consumers have been led to believe that these promotions indicated a sustained reduction in regular prices, which the ACCC alleges was not the case.

The watchdog has estimated that 'tens of millions of the affected products' were sold, resulting in 'significant revenue' for the supermarkets.

With such high stakes, it's no wonder the law firms have received an 'avalanche of calls from outraged customers.'
Key Takeaways

  • A class action lawsuit has been launched against Coles and Woolworths supermarkets with claims of deceptive pricing practices.
  • Shoppers who purchased specific products marked as discounted during a specified timeframe may be eligible for compensation.
  • The lawsuit alleges violations of Australian Consumer Law by making false or misleading representations about product pricing.
  • The ACCC has accused the supermarkets of inflating prices before applying for discount promotions, misleading consumers about actual savings.
Have you noticed any discrepancies in the pricing of products during your shopping trips to Woolworths or Coles? Do you plan to join the class action? Share your experiences and thoughts in the comments below.
 

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I would like to join the class action as shop at Woolworths all the time but have often noted specials priced the same as price underneath. All my receipts are electronic through my Everyday rewards so hope this is satisfactory as I’m sure no one keeps paper receipts for a length of time and I do follow & buy specials in my shopping regularly
 
I also do all my shopping at Woolies & Coles ;I wish to join the class action lawsuit against these Giants !

If receipts are required , all I like most others have to show is my loyalty cards; if at a crunch I have Bank statements for when I used my card for payment , instead of cash , which I prefer as I know what I have spent ,without waiting on a statement to arrive home. (y):(o_O
 
I tend to look under the special tag now as I’ve been caught before, I only shop at Aldi and Cole’s never Woolworth, I do not have receipts as I pay with my qantas card.
 
If people want to know what they have brought in the past from Woolies, I don't know about Coles, all you need to do if you're on a computer/laptop is log into your account and look near the top where it says "Lists" there is a choice in there to show every item you've ever brought from them, even the out of stock items.
 
Please be wary of all things too good to be true. I have just attempted to register my claim, it is a pay if you win claim. So if l won $1300 in compensation that would probably eventuate in the lawyers fee of $1290 being taken out of the sum l was to receive…that leaves ten dollars for me to spend on some chicken rissoles in Cole’s on a half price special. 😂
ps: My claim was rejected as the” captcha “ didn’t work either…l must be a robot….
l think l’ll give it a miss .
 
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Reactions: deni67
I mainly shop at Coles but lately have been shopping at Aldi since we have one near us. I do not keep my dockets so cannot see how we could make a claim. Unless they can go by our Fly Buy accounts. I mainly buy multiples of an item on special that I would normally need. I dont buy just because it is a "special"
 
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Reactions: deni67
How would anyone be able to prove that they had been conned - where I live there is only Coles and Woolies to choose from so naturally most of the community would have been taken in - how would anyone remember what was purchased years ago
 
Who keeps their receipts, by the look of it not many people will be able to claim. You can be sure there there will be such catch to making a claim!
 
I bet the Legal teams are rubbing their hands together. They are making the money. Have seen the daily charges for a Barrister - ???
 
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