Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC) is suing Coles and Woolworths over allegations of fake discount claims. The ACCC says the supermarkets misled customers by temporarily increasing prices before lowering them.
This tactic inflated prices to the original or even higher costs. The ACCC launched an investigation after receiving consumer complaints and conducting its monitoring.
The probe revealed Woolworths misled customers about 266 products over 20 months. Coles did the same for 245 products across 15 months.
Affected products included pet food, Band-Aid plasters, mouthwash, and popular Australian brands like Arnott’s Tim Tam biscuits and Kellogg’s cereal.
Many consumers rely on discounts to stretch their grocery budgets, particularly during cost of living pressures. The ACCC estimates that Coles and Woolworths sold tens of millions of affected products, generating significant revenue from these sales.
Prime Minister Anthony Albanese condemned the alleged conduct, stating it is “completely unacceptable” and “not in the Australian spirit”. The government has drafted legislation for a mandatory “code of conduct” for supermarkets to protect suppliers and consumers.
Coles defended its practices, citing rising costs and efforts to balance price increases with customer value. Woolworths pledged to engage with the ACCC and review the claims.
The ACCC seeks significant penalties and orders for Coles and Woolworths to enhance their charitable meal delivery programs. This legal action marks a crucial step in ensuring transparency and fairness in Australia’s supermarket industry, cracking down on fake discount claims.
The supermarkets’ actions have sparked concerns about fake discount claims. If proven, these allegations highlight the need for stricter regulations to prevent fake discount claims.
