Shoppers may receive refunds as investigation targets supermarket giants
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As we navigate the aisles of our local supermarkets, we trust that the prices on the shelves reflect a fair deal.
But what if that trust was misplaced? Australian shoppers might soon discover if they're due for a financial windfall as a major class action investigation targets Coles and Woolworths, two of the country's supermarket giants.
The investigation, spearheaded by GMP Law, probes allegations that these retail behemoths have used misleading pricing tactics.
The claims centre around the 'Prices Dropped' and 'Down Down' sales campaigns, which are accused of violating Australian consumer law by presenting discounts that may not have been as genuine as they appeared.
The consequences could be significant if Coles and Woolworths are guilty of these dodgy practices.
GMP Law is determined to secure refunds for consumers potentially duped by these campaigns.
It aims to recover the difference between discounted and original, undiscounted prices.
Gerard Malouf, chairman of GMP Law, emphasised the importance of honest and transparent information for consumers.
'This investigation is an important step towards protecting those rights and ensuring that businesses adhere to fair trading practices,' he asserted.
Dr Joel Lisk, a research fellow in law at Flinders University, views the proceedings as a positive development.
He clarified that while the Australian Competition and Consumer Commission (ACCC) isn't directly seeking refunds for customers, a successful outcome could pave the way for damages claims by misled consumers.
The law firm has outlined three methods for customers to potentially claim refunds: through data collected on Woolworths and Coles Rewards programs, holding onto discounted product receipts, or signing a statutory declaration confirming the purchase of specific products during the relevant period.
‘One will be through the data collected on their Woolworths and or Coles Rewards programs as they record all of the information regarding time and date of purchase, pricing and discounts,’
‘The other will be by holding receipts of the discounted products, the other will be by signing a statutory declaration that the particular product was purchased during the relevant period and providing details of the product/s purchased.’
‘If there is a successful settlement, the firm intends to donate surplus funds to an Australian food charity.’
The ACCC's allegations involve hundreds of products over extended periods, and Dr Lisk noted that the financial impact on consumers could be substantial.
However, he also raised concerns about whether financial penalties deter such conduct in the future.
This class action follows Prime Minister Anthony Albanese's stern warning that major supermarkets have breached the trust of everyday Australians.
An interim report by the ACCC highlighted customer concerns about rising prices, lack of competition, and scepticism regarding specials or discount schemes.
Coles and Woolworths, which dominate 67 per cent of the supermarket sector, have responded to the report.
Woolworths Group chief executive Amanda Bardwell insists that the grocery sector is competitive and offers ample choice.
At the same time, a Coles spokesperson has expressed support for a diverse industry that provides choice and competitive pricing.
In other news, the ACCC has taken legal action against Woolworths and Coles over allegations of misleading pricing.
Claims indicate that supermarkets raise product prices before advertising them as discounted. You can read more about it here.
How could this investigation impact consumer trust in supermarkets, and how might it change pricing practices in the retail industry? Feel free to share your thoughts and opinions in the comments below.
But what if that trust was misplaced? Australian shoppers might soon discover if they're due for a financial windfall as a major class action investigation targets Coles and Woolworths, two of the country's supermarket giants.
The investigation, spearheaded by GMP Law, probes allegations that these retail behemoths have used misleading pricing tactics.
The claims centre around the 'Prices Dropped' and 'Down Down' sales campaigns, which are accused of violating Australian consumer law by presenting discounts that may not have been as genuine as they appeared.
The consequences could be significant if Coles and Woolworths are guilty of these dodgy practices.
Class action against Coles and Woolworths investigated by GMP Law for alleged misleading pricing tactics. Credit: Shutterstock
GMP Law is determined to secure refunds for consumers potentially duped by these campaigns.
It aims to recover the difference between discounted and original, undiscounted prices.
Gerard Malouf, chairman of GMP Law, emphasised the importance of honest and transparent information for consumers.
'This investigation is an important step towards protecting those rights and ensuring that businesses adhere to fair trading practices,' he asserted.
Dr Joel Lisk, a research fellow in law at Flinders University, views the proceedings as a positive development.
He clarified that while the Australian Competition and Consumer Commission (ACCC) isn't directly seeking refunds for customers, a successful outcome could pave the way for damages claims by misled consumers.
The law firm has outlined three methods for customers to potentially claim refunds: through data collected on Woolworths and Coles Rewards programs, holding onto discounted product receipts, or signing a statutory declaration confirming the purchase of specific products during the relevant period.
‘One will be through the data collected on their Woolworths and or Coles Rewards programs as they record all of the information regarding time and date of purchase, pricing and discounts,’
‘The other will be by holding receipts of the discounted products, the other will be by signing a statutory declaration that the particular product was purchased during the relevant period and providing details of the product/s purchased.’
‘If there is a successful settlement, the firm intends to donate surplus funds to an Australian food charity.’
The ACCC's allegations involve hundreds of products over extended periods, and Dr Lisk noted that the financial impact on consumers could be substantial.
However, he also raised concerns about whether financial penalties deter such conduct in the future.
This class action follows Prime Minister Anthony Albanese's stern warning that major supermarkets have breached the trust of everyday Australians.
An interim report by the ACCC highlighted customer concerns about rising prices, lack of competition, and scepticism regarding specials or discount schemes.
Coles and Woolworths, which dominate 67 per cent of the supermarket sector, have responded to the report.
Woolworths Group chief executive Amanda Bardwell insists that the grocery sector is competitive and offers ample choice.
At the same time, a Coles spokesperson has expressed support for a diverse industry that provides choice and competitive pricing.
In other news, the ACCC has taken legal action against Woolworths and Coles over allegations of misleading pricing.
Claims indicate that supermarkets raise product prices before advertising them as discounted. You can read more about it here.
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