Woolworths and Coles sued over 'misleading' price discounts by consumer watchdog ACCC

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

00:08down, down to federal court after allegedly misleading buyers with fake discounts and

00:13price gouging on hundreds of products, according to consumer watchdog the ACCC.

00:18We 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.

00:43The Australian Competition and Consumer Commission today launched legal action

00:47against the grocery giants and called their price drop and discount claims misleading and illusory.

00:53As a result, the ACCC alleges that the price discounts as promoted were misleading because

01:01the discount was illusory. In addition, the ACCC alleges that in many cases, Woolworths

01:08and Coles planned the temporary price spike in order to establish a new higher was price

01:16for their was now price discount promotions.

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.

01:30Australians are not paying one cent more than they should when they go to a supermarket.

01:36The ACCC allegations relate to 266 products for Woolies over 20 months

01:42and 245 products for 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

01:52supermarkets to fund charities that deliver meals to vulnerable Aussies.

01:57Coles has stated it will fight proceedings.

01:59Woolworths claimed it related to historical pricing schemes.

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