Class action launched against Coles, Woolworths over alleged misleading discounts

A consumer protection law firm has launched a class action against Coles and Woolworths, saying their allegedly misleading discount claims mean the average customer could be entitled to a refund of up to $1300.

Gerard Malouf and Partners (GMP Law) has lodged class action lawsuits against the two supermarket giants in Federal Court today over allegations they promoted misleading discount claims on hundreds of everyday products.

The action hopes to win back the difference between the alleged illusory discounted pricing and the original undiscounted price for items purchased at Coles between February 2022 and May 2023 and at Woolworths between September 2021 and May 2023.

“We estimate that the average Australian consumer could be eligible for a refund ranging between $200 and $1300-plus, depending on their shopping habits and purchases at these retailers,” GMP Law chairman Gerard Malouf said.

“We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide.”

It comes after the Australian Competition and Consumer Commission (ACCC) in September announced it was taking Coles and Woolworths to court over their “Prices Dropped” and “Down Down” discounts.

The watchdog alleged the everyday items had been subjected to price hikes and the discounts were actually higher than or the same as the price before the increase.

GMP Law said its class action was unique to the ACCC proceedings as it is offering consumers refunds.

In September, the ACCC released its supermarket inquiry interim report that found Australia’s supermarket retailing is an oligopoly, with Coles and Woolworths together accounting for more than 67 per cent of sales.

The report detailed what the commission heard from consumers, suppliers and others at the halfway mark of a 12-month inquiry into the major supermarkets.

Australian shoppers said they were losing faith in the supermarkets and were untrusting of price claims.

The final report is due on February 28 and will hand down findings and any recommendations to address potential harms if required.

Australians can join the class action at PriceDropClassAction.com.au.