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  • 15 hours ago
The legal battle between supermarket giant Woolworths and the consumer watchdog is entering its final stages. Woolies is being sued by the ACCC, which alleges it misled shoppers with fake discounts on hundreds of items.

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00:01This case is all about hundreds of items that were put on prices drop promotions and a product
00:08would be sold with a ticket that was red that showed prices dropped and there was a higher
00:14WAS price, say $14, and then a discounted price, say $8, and there'd be a cross through
00:21the higher price and so you'd see you were getting a significant saving.
00:25But what the ACCC alleges is that those were fake discounts because the saving price was
00:32actually usually higher than a price that had been charged a short time ago and this
00:38all goes down to whether discounts are genuine or not and that requires establishing a price
00:45for a reasonable period of time.
00:47But there's no clear red line in the law about what that should be, so it means that Woolworths
00:52had to come up with its own internal guidelines and the ACCC has alleged that Woolworths, over
01:00time, reduced the period of time for those discounts to occur.
01:04So it went from months to weeks, so it was discounting faster and faster.
01:10And even when that was happening, the guidelines were still being broken in some of the cases
01:16for products like fab laundry powder for Oreo biscuits and others.
01:22Woolworths says the amount that those guidelines were broken is overstated by the ACCC, but this
01:28really goes to a key part of the case that we've heard a lot of cross-examination on where
01:34Woolworths is trying to defend its practices as it related to these internal guidelines in terms
01:43of whether this shows that people were misled on the prices it charged.
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