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Coles and Woolworths in court over alleged misleading discount claims

Posted on by Vaseline
Coles and Woolworths in court over alleged misleading discount claims

Coles and Woolworths are to appear in court after they allegedly misled consumers with their ‘prices cut’ and ‘prices down’ campaigns.
The Australian Competition and Consumer Commission (ACCC) has launched legal proceedings against the supermarket giants for alleged breaches of consumer law.
The consumer watchdog examined 245 products at Coles over 15 months and 266 products at Woolworths over 20 months. The regulator said the supermarkets raised the prices of certain products before lowering them. Discounted products were sold above the normal price.

ACCC chair Gina Cass-Gottlieb said Woolworths and Coles were misleading their customers with discounts that were “illusory”.

“We also allege that in many cases Woolworths and Coles had already planned to later offer the products on a ‘price reduction’ or ‘markdown’ promotion prior to the price increase and that they implemented the temporary price increase with the aim of achieving a higher ‘wash’ price,” they said.
The ACCC found that some products were priced at least 15 percent higher for short periods before being included in the promotions.
An in-depth investigation was conducted using industry contacts and social media monitoring.
The ACCC estimates that tens of millions of products are affected and says it is affecting consumers’ ability to make informed choices.
The legal action comes amid a Senate inquiry into supermarket prices and calls for reform of the sector to help people afford everyday items in a cost-of-living crisis.

SBS News has contacted Coles and Woolworths for comment.

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