Australia’s consumer watchdog is taking on the country’s biggest supermarket chains, Coles and Woolworths, in a legal battle over alleged deceptive pricing practices. The Australian Competition and Consumer Commission (ACCC) has accused the grocery giants of falsely claiming to have permanently dropped the prices of hundreds of items, only to later raise them back up to the original cost or even higher.
The ACCC claims that Coles and Woolworths violated consumer law by misleading customers with their ‘Prices Dropped’ and ‘Down Down’ promotions, which are widely recognized by Australian shoppers as representing long-term price reductions. However, an investigation revealed that the discounts were often short-lived and illusory.
Prime Minister Anthony Albanese condemned the alleged conduct as “completely unacceptable,” emphasizing that customers deserve transparency and fair treatment. In response to the controversy, the government has unveiled draft legislation for a new “code of conduct” for supermarkets to ensure greater accountability and protect consumers.
The ACCC’s investigation found that both Coles and Woolworths had misled customers about numerous products, including popular items like Tim Tam biscuits, Bega Cheese, and Kellogg’s cereal. The watchdog estimates that the companies sold millions of affected products and derived significant revenue from these sales.
ACCC Chair Gina Cass-Gottlieb emphasized the importance of accurate pricing and discount claims, particularly for consumers facing financial pressures. The watchdog is seeking substantial penalties against Coles and Woolworths, as well as an order for them to enhance their charitable meal delivery programs.
Both supermarket chains have defended their actions, with Coles attributing price fluctuations to rising costs and Woolworths pledging to address the ACCC’s concerns. As the legal battle unfolds, the government is considering implementing a stronger, mandatory code of conduct for the food and grocery industry to safeguard both suppliers and consumers from unfair practices.
The showdown between the ACCC and Australia’s supermarket giants highlights the ongoing debate over pricing transparency and consumer rights in the retail sector. Stay tuned as this story continues to develop.
