Australia’s two largest supermarket chains, Coles and Woolworths, are currently in negotiations with the Australian Competition and Consumer Commission (ACCC) over how many products will be examined in court amid allegations of misleading discount practices.
The ACCC has launched legal proceedings, claiming both retailers manipulated prices by temporarily raising them before advertising so-called discounts under campaigns like Woolworths’ “Prices Dropped” and Coles’ “Down Down.” The watchdog alleges that these discounts were still equal to or higher than the original prices.
Products under scrutiny include dairy, pet food, coffee, personal care items, medicine, lollies, cereal, and cleaning supplies. The Federal Court in Melbourne heard disputes today over the number of sample items to be included as evidence in the trial.
Coles agreed to review 12 items, but the ACCC requested four additional ones, which Coles argued would require more witnesses and prolong proceedings. Woolworths initially proposed six products but was asked to consider up to 20, before the ACCC reduced that number to 12.
Justice Michael O’Bryan urged all parties to reach a compromise by June 13, stating that reviewing fewer than 15 products would lead to a more efficient trial.
The ACCC is seeking substantial penalties for what it describes as a 15-month violation of consumer trust, while Coles and Woolworths deny the allegations and claim the cases are unfounded.
