Woolworths and Coles taken to Federal Court over 'misleading' price discounts

Australian Community Media

Australia's two biggest supermarket chains are heading 'down down' to federal court after allegedly misleading buyers with fake discounts and price gouging, according to consumer watchdog ACCC.

Transcript

00:00Down, down, prices are staying down, down.

00:04Australia's two biggest supermarket chains, Coles and Woolworths, are heading down, down

00:09to federal court after allegedly misleading buyers with fake discounts and price gouging

00:14on hundreds of products, according to consumer watchdog the ACCC.

00:19We allege that Woolworths and Coles offered the products at regular long-term prices for

00:26six months or more, then increased the price for a short period before placing the products

00:32on the Woolworths prices dropped promotion or the Coles down, down promotion at prices

00:39higher than or the same as the prior regular price.

00:44The Australian Competition and Consumer Commission today launched legal action against the grocery

00:48giants and called their price drop and discount claims misleading and illusory.

00:54As a result, the ACCC alleges that the price discounts as promoted were misleading because

01:01the discount was illusory.

01:04In addition, the ACCC alleges that in many cases, Woolworths and Coles planned the temporary

01:11price spike in order to establish a new higher was price for their was now price discount

01:18promotions.

01:19Aussies have vented their frustrations at supermarket price gouging, shrinkflation and

01:25massive profits posted by the chains as consumers deal with ongoing cost of living issues.

01:31Australians are not paying one cent more than they should when they go to a supermarket.

01:37The ACCC allegations relate to 266 products for Woolies over 20 months and 245 products

01:43for Coles across 15 months.

01:46Prices are down and staying down at Coles.

01:49It is seeking penalties, costs and community service orders for the supermarkets to fund

01:54charities that deliver meals to vulnerable Aussies.

01:57Coles has stated it will fight proceedings.

02:00Woolworths claimed it related to historical pricing schemes.

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