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The consumer regulator’s crackdown on alleged fake discount promotions by supermarket giants Coles (ASX: COL) and Woolworths (ASX: WOW) has triggered two class action lawsuits that the Sydney law firm behind the move says could be worth up to $1,300 to each affected consumers.
Gerard Malouf & Partners (GMP Law), a consumer protection and personal injury law firm, says it has lodged class actions against Coles and Woolworths for allegedly promoting misleading discount claims on everyday products.
The move has been triggered by the Australian Competition and Consumer Commission (ACCC) in September launching separate actions in the Federal Court against the supermarket groups over allegations that they misled consumers on their respective Down Down and Prices Dropped promotions on hundreds of popular products.
The ACCC alleged that the retailers had temporarily spiked the prices of these goods before reducing them under these respective savings labels to prices that were higher than, or the same as, the regular price that applied before the price spike.
GMP Law says the class actions have been filed in response to the ACCC’s findings with the aim to “secure financial redress for Australians who may have been misled by the supposed discounts”.
The firm says its class actions are separate from the ACCC proceedings, which are seeking penalties but offer no direct consumer refunds.
GMP Law says its class actions focus solely on winning back the difference between the advertised “discounted” prices and the real prices for hundreds of commonly purchased products 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 $1,300-plus, depending on their shopping habits and purchases at these retailers,” says GMP Law chairman Gerard Malouf.
“We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide”
The proposed legal action aims to recover the price differential between the alleged illusory discounted pricing and the original, undiscounted price.
Coles says it has no yet received formal notice of this action, while Woolworths has declined to comment.
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