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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Whenever I saw the" down down" pricing , particularly on products I would buy up,mince and deli products are a prime example
 
  • Like
Reactions: sueevans
I am a 76 year old pensioner, I shop for our household of three adults.
It costs me up to $500 per week and I shop between Woolworths and Coles.
It is very evident that prices rise frequently and yes I check under the price tags
to see everyday prices to sale prices. I agree 100% they both should both be held accountable.
My name is Vivienne Ralph [email protected]
 
Whenever I saw the "down down" promotion I would stock up, particularly meat and deli products. It is really sad that these large supermarket have stopped so low to increase their profits.
Kathy Rohweder
[email protected]
 
  • Like
Reactions: croz
Yes yes yes
We have noticed this very much specially in Entrada North Parramatta
 
well i havea cat and the price for fancy feast cat food has gone up from 80 cents at the start of the pandemic a can to a $1.60 and yet today i can get it for $1.00 a can chuck steak has doubled and so has all meats and yet farmers do not feap the extra benefits buyers pay for
A big mark up this is at WOOLWORTHS
 
I am also interested in joining as I get weekly home delivery for both coles/woolworths,it is disgraceful 😔 the blatant price hikes,tyvm
 
It stands to reason that to join this class action, you would have to have some basic evidence that a) you shop at one of the supermarkets named on a regular basis, and b) you have been purchasing products at the 'Down, Down' prices. Obviously, this means that you need shopping receipts as evidence. Without those receipts, what you might say is simply 'hearsay' (polite legal terminology for bs) literally the whole country could join the lawsuit expecting to get a lump-sum boost. So, if you have the evidence that whatever you claim is TRUE and not a bs attempt to cash-in, definitely join the lawsuit. If not, don't waste your time and effort on being made to look like a fool and/or liar in the court room when you can't provide any evidence. That's just how it all works folks!
 
HI there....
Myself and my partner would also like to join the class action, we regularly target the "specials" at both Coles and Woolies in an attempt to make ends meet.

Is there going to be a link posted or do we perform a search ourselves on the internet?

Like others have asked, how do we provide "proof of purchase" as we don't generally keep our Coles and Woolies receipts for extended periods?
 
Yes of course I will be all for reclaiming some of my false savings.i have been a loyal shopper to the woolworths rewards card for many years.and now the thought of the corporate fat cats on huge salaries looking down on and laughing at the low/middle income workers trying to make ends meet boils my blood..let's hope if this claim is a success they may start to respect the people who fund their lifestyle..
 

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