00:01First it was Coles, now its rival is being accused by the competition watchdog of misleading
00:07customers by using fake discounts.
00:09It reflects a real enforcement approach from the ACCC.
00:15The ACCC claims Woolworths broke its internal policies by placing 266 products on long-term
00:22specials.
00:23The case is focusing on 12, including an Oreo family pack that was on the prices dropped
00:28promotion for $3.50 for at least 696 days before the price was put up to $5 for 22 days,
00:36then
00:37dropped to $4.50, 29% higher than the previous regular price.
00:41It requires the ACCC to show that the pricing conduct was either misleading or likely to
00:49mislead.
00:49The court heard regular prices were on white labels, yellow tags indicated temporary specials,
00:55the red and white tag key to the promotional campaign.
00:59The ACCC barrister saying the subtle magic of the prices dropped message that draws the
01:05consumer in is to say the new stable price is lower.
01:09But the judge disputed whether customers would overthink these labels.
01:14Woolworths rejected the claims and said increases were driven by suppliers during a period of
01:19soaring inflation.
01:20Legal experts say this is an important case because if the law can ensure that supermarket
01:26prices are fair dinkum, it will have ripple effects across other products in the economy.
01:32And even if Woolworths is found to be pushing bogus discounts, experts say the supermarket chain
01:38will come out on top.
01:39It's an ironic thing, but there's a benefit for Woolworths if they lose this case and end
01:45up with genuinely honest prices.
01:48A high profile case during another cost of living crisis.
01:51Consideration of profitable cases.
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