Customers could claim up to $5,000 over sneaky pricing tactics at Coles and Woolworths—are you eligible?

As savvy shoppers, we all love a good bargain, especially about our weekly grocery haul.

But what happens when those 'bargains' are not quite what they seem?

This is the question at the heart of a potential class action suit that could see Coles and Woolworths customers claiming up to $5,000 in compensation.



Carter Capner Law, a leading Australian law firm, is investigating the viability of a class action alongside the Australian Competition and Consumer Commission's (ACCC) legal action against the supermarket giants.

The allegations? That Coles and Woolworths may have deceived shoppers with misleading discount pricing claims on hundreds of products through their 'Prices Dropped' and 'Down Down' campaigns.


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Coles and Woolworths customers might claim up to $5,000 over the supermarkets’ sneaky pricing tactics. Credit: Shutterstock


‘Early estimates suggest that households could claim between $2,000 and $5,000, depending on the amount spent and the impact of the deceptive pricing,’ Peter Carter, the Law Director at Carter Capner Law, said.

This comes after the firm received an 'avalanche of calls from outraged customers' who felt betrayed by the supermarkets, particularly when many are grappling with the cost of living crisis.

The class action was prompted by customer outrage, with Carter stating that the firm had no initial plans to commence a class action until they were inundated with calls from customers 'demanding action and compensation.'



The potential class action does not depend on the outcome of the ACCC's case but will draw upon the evidence collected by the consumer watchdog.

‘The evidence the ACCC has collected would be useful, but the claim relies on their breaches of the Australian Consumer Law sections 18 (misleading/deceptive conduct), 20, 21 (unconscionable conduct) and 29 (misleading representation re price of goods),’ Carter said.

Dr Joel Lisk, a research fellow in law at Flinders University, has called the class action 'a positive' for shoppers.

‘The ACCC proceedings aren't about getting refunds for customers,’ Lisk said.

‘But if they are successful, it would mean customers have, in theory, been misled and deceived and could be entitled to damages.’



According to Dr Lisk, when it comes to compensation, the numbers 'start to add up' for consumers.

However, he also noted that it was 'hard to say' whether financial penalties will deter businesses from engaging in misleading conduct in the future.

‘If [fines are] seen as just the cost of doing business, it doesn't really dissuade businesses from engaging in misleading and deceptive conduct,’ he said.

‘Seeking damages from business for the losses that individuals like us have incurred is one way of doing that. But of course, we're talking probably about dollars and cents in transactions when businesses like Coles and Woolworths deal in the billions.’
Key Takeaways
  • Shoppers at Coles and Woolworths could potentially claim compensation ranging between $2,000 and $5,000 if the supermarkets are found to have used deceptive pricing tactics.
  • Carter Capner Law is considering a class action lawsuit on behalf of customers, with claims ignited by the ACCC's legal action against Coles and Woolworths for misleading discount claims.
  • The potential class action is fuelled by customer outrage and does not depend on the outcome of the ACCC's case but on breaches of specific sections of the Australian Consumer Law.
  • The ACCC alleged that the supermarkets' misconduct involved hundreds of products with misleading price representations over several months, which could result in significant financial compensation for affected consumers.
Have you noticed any questionable pricing tactics during your shopping trips? If the class action goes ahead, do you plan to join it? Share your experiences and opinions in the comments below!
 
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If you are a rewards member they will have records of what you have spent with them over the years so that would soon be established. But as already stated the only winners here will be the lawyers. They should do pro bono so those that actually deserve to get the money do or Coles and Woolworths have to pay legal costs over and above compensation to customers .
 
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They have been doing this for longer than I can remember.
Just look at how they manipulate the cost of fuel.

Something needs to be done.
Hi PeterRetail,
I totally agree with you.

I never buy petrol from the Woollie outlets for that very reason. their prices are way over the top compared with every other service stations.

Even with their 4 cents off, offer, they are still way over. Yet many still go & blindly fill up. I can't understand them at all.
 
I also joined the optus class action and have heard absolutely nothing.

For this one you need the receipts. I spend between $300 to $400 every week. I do on line shopping and they only store up to a few receipts at a time and they haven't given an invoice in your shipping for a few years now
wow! wish I had that kind of money for shopping! I spend $200 a fortnight! all I can afford on age pension!
 
The most questionable prices I see are the half price offers,because the items on sale are never the full price they are claiming.
 
Hi Suzanne rose,

I think that you'll find that they take quite a considerable bit more than what you suggest of their take in percentages.

One would hope that I'm wrong in what I know/assume.

No doubt, some one out there may well enlighten us to the fact.
I watched an episode of A Current Affair about a large group of women who were disfigured for life by a plastic surgeon. A legal firm offered to represent them in a class action which, after a few years, resulted in the group being awarded many millions of dollars. The lawyers took millions in fees and the women will receive less than $400 each - if they ever get paid. Also, I've heard that if an amount is offered before the court case, and it is refused and the court case goes ahead, even if you win the case, but the amount awarded is less than the previous offer - you have to pay all of the opposition's court fees. That includes their expensive lawyers etc. This could be many times more than the amount awarded! Court cases and class actions are only carried out to make lawyers and solicitors even richer - it's never for the average person! The rich get richer....
 
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Hi Suzanne rose,

I think that you'll find that they take quite a considerable bit more than what you suggest of their take in percentages.

One would hope that I'm wrong in what I know/assume.

No doubt, some one out there may well enlighten us to the fact.
I just went through a medical negligence case and the no win no pay lawyers took 35% capped at $150,000
 
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My wife and I have always been suspicious about the tactics of Woolworths and Coles and always lift the SPECIALS tags to check if the price is a special or not - which in most cases, they have not been, or are more, or no difference at all, and then we avoid that product.
So I doubt if I would receive anything back, if I did join the class action?
However, I am in on the class action - just let us know how to join. Thanks.
 
In the days before unit pricing, supermarkets used to have another trick.

Buy a 500 g item for $5.00. Buy the identical item in a 1 kg pack for $11.50. It used to make the "bulk buying" idea redundant.

Another one but current. Unit pricing differs in the way it is displayed. Some have $1.50 per 100 g while others have $15.00 per kilo. Some sort of subtle psychology going on there!

Last but not least. Differing numbers of individual "pieces" in a pack for the same price. I have noticed that some brands of coffee sachets and pods have a 10 pack but have a 8 pack for the same product in a different "flavour" for the same price. Deception at its finest!
 

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