Coles and Woolworths face lawsuit over alleged fake discounts in Australia
- The ACCC is suing Coles and Woolworths for allegedly misleading consumers with false discount claims.
- The investigation found that both companies inflated prices before advertising them as reduced, affecting hundreds of products.
- The lawsuit aims to impose significant penalties and ensure consumers can trust pricing accuracy during economic pressures.
Australia's consumer watchdog, the ACCC, has initiated legal action against Coles and Woolworths, the nation's largest supermarket chains, for allegedly misleading consumers with false discount claims. The lawsuit stems from accusations that both companies temporarily inflated prices before advertising them as permanently reduced, violating consumer law. The investigation revealed that Woolworths misled customers on 266 products over 20 months, while Coles did so for 245 products across 15 months. The affected items ranged from everyday groceries to popular Australian brands. The ACCC's scrutiny has intensified due to rising living costs, prompting consumers to rely heavily on discounts. The commission's chair, Gina Cass-Gottlieb, emphasized the importance of accurate pricing, especially during economic pressures. The watchdog estimates that the two supermarket giants sold tens of millions of the misleadingly priced products, generating substantial revenue from these sales. In response to the allegations, Coles stated that rising costs necessitated price adjustments, and it aimed to balance this with promotional activities. Woolworths, on the other hand, indicated it would engage with the ACCC regarding the claims. Both companies have faced increasing criticism over potential price gouging and anti-competitive practices in recent years. The ACCC is seeking significant penalties from both firms and an order for them to contribute to a charity that provides meals to Australians in need, in addition to their existing food aid programs. This legal action highlights the ongoing challenges consumers face in navigating grocery pricing amidst economic uncertainty.