AUSTRALIA’S two major supermarket chains say they will defend class action lawsuits brought over allegations of misleading promotional price practices.
Woolworths and Coles will dispute claims they deceived customers through misleading promotions on everyday products.
Law firm Gerard Malouf and Partners has lodged two class action suits against the supermarket giants in the Federal Court, alleging they breached Australian consumer law through misleading promotional discounts on hundreds of items.
Both Coles and Woolworths have told shareholders they would defend themselves against the class actions.
“Woolworths Group intends to defend the class action proceedings,” the supermarket said on the ASX.
The fresh lawsuits follow legal action by the Australian Competition and Consumer Commission’s (ACCC) against the two supermarket giants.
“Coles announced on 23 September 2024 that it is defending the ACCC proceedings, and also intends to defend the proceedings commenced by Gerard Malouf & Partners,” Coles said in its announcement.
The commission claims the retailers bumped up the price of products by 15% for brief periods, placing them in Woolworths’ “Prices Dropped” and Coles’ “Down Down” promotions.
It says their prices were lower than during the price bump, but higher or the same as the regular price.
While the consumer watchdog’s proceedings will focus on regulatory penalties, the class action seeks compensation including the difference between the advertised discount prices and the actual prices charged, for impacted customers
“We estimate that the average Australian consumer could be eligible for a refund ranging between $200 and $1300+,” the law firm’s chairman Gerard Malouf said. “We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide.”
