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 have had my rewards card since I moved to Tasmania in 2001for 17 year and still have the same card today now back in Victoria.
I think they will be able to obtain what they need form these companies via court orders.
They certainly can't say that they don't keep their customer purchase details for that length of time, and at the same time expect their customers to keep their receipts for years.
Damn, I don't know about anyone else, but my house would be drowning in paper 🤣🤣
Have just gone into my woolies online acct to download evidence and they have deleted all past shops during the relevant period, didn't have a reward card so only credit/debit card receipts....but what Woolies have forgotten to delete is historical digital shopping lists within my account that I used to convert to orders which relate to bank statements....and oversight, bless their greedy little hearts...now to see if Tassie people can join the class action😀
 
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Have just gone into my woolies online acct to download evidence and they have deleted all past shops during the relevant period, didn't have a reward card so only credit/debit card receipts....but what Woolies have forgotten to delete is historical digital shopping lists within my account that I used to convert to orders which relate to bank statements....and oversight, bless their greedy little hearts...now to see if Tassie people can join the class action😀
I looked into my coles account a few weeks ago and all the online invoices have disappeared whereas awhile ago you could look up invoices from years ago

Guess they are trying to destroy evidence
 
I would ask how one would prove they had purchased such items.
Agree, can't see this class action changing anything...who keeps receipts & documents anything (most people just keep paying/buying & allowing themselves to be ripped off because really they have no choice no matter where they shop!
Supermarkets, just like banks, insurance companies, power companies, etc etc all legalised robbers!
 
Can't see this class action changing anything...who keeps receipts & documents anything (most people just keep paying/buying & allowing themselves to be ripped off because really they have no choice no matter where they shop!
Supermarkets, just like banks, insurance companies, power companies, etc etc all legalised robbers!
And they'll soon find another way to deceive consumers & keep their billions of dollars profits high anyway!

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Theyd probably be able to track anyone who has been deceived this way via Everyday Rewards anyway (they obviously know everything else about ER customers) so all ER customers affected should be automatically refunded without joining the class action, but of course that wont happen!
 
Absolute garbage the whole lot. Only one to benefit are lawyers. Both stores are huge employers and at the end of the day their net return is roughly 3% on investment. Aldi is overhyped and I wonder if any underhand deals are done with them and those that laud their "cheapness" in reviews....reviews which essentially compare their house brands with the major supermarket's major label products. Shop between all 3 supermarkets for best results. Common sense. Disband the ACCC if this is all they have to do. It seems this forum is like Paul Keating's "salmon that jumps on the hook". Reels 'em in without understanding or even looking at the whole picture.
 
I shop at Woolworths all the time but do not keep receipts going back any distance - might keep a couple for a few weeks. So where does that leave me? Help!.
 
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]
Wow that seems an awful lot for 3 people. I spend up to $250 for 2 adults and 2 dogs.
 
It seems a bit useless to pursue if you have to have receipts, who keeps their weekly receipts.
receipts are not the only proof, have you been paying with a card or cash, either way can be evidence of purchase, the more people that join class action the better, lawyers are after any information to DRIVE HOME TO THIS MOB THAT THEIR SHONKY DEALS JUST AREN'T LEGITIMATE
 
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]
I would also like to join the class action as I have shopped at Woolworth's for years out of loyalty. I have found WW to have everything I have needed at what I thought were fair prices but I have noticed though, over the last few years, most goods I have purchased have gone up unreasonably and when there's a sale, sometimes the yellow sales tags haven't been any cheaper than the original prices so I feel cheated. I would like to be included in the result of any class action and be recompensed for continually being ripped off by a company that makes millions in profit each year unfairly.
Gayle Rode
[email protected]
 
I would also like to join the class action as I have shopped at Woolworth's for years out of loyalty. I have found WW to have everything I have needed at what I thought were fair prices but I have noticed though, over the last few years, most goods I have purchased have gone up unreasonably and when there's a sale, sometimes the yellow sales tags haven't been any cheaper than the original prices so I feel cheated. I would like to be included in the result of any class action and be recompensed for continually being ripped off by a company that makes millions in profit each year unfairly.
Gayle Rode
[email protected]
google malouf + Partners and Carter Capner Law to register
 
Yes there have been times when I have questioned pricing or been overcharged. Many items noticed with special tag however price underneath is the same so but as advertised ‘a special’
 

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