Australian consumers may soon receive financial compensation of up to $1,300 as supermarket giants Woolworths and Coles face class action lawsuits over alleged misleading discount practices. These legal actions aim to hold the retailers accountable for deceptive pricing that may have impacted millions of shoppers.
Background of the Allegations
Between September 2021 and May 2023, Woolworths and Coles allegedly engaged in misleading promotional tactics. The Australian Competition and Consumer Commission (ACCC) accuses the supermarkets of inflating prices shortly before applying discount tags, making shoppers believe they were getting a better deal than they actually were. Woolworths reportedly misrepresented prices on 266 products over 20 months, while Coles did the same for 245 products over 15 months.
Initiation of Class Action Lawsuits
Law firms such as Gerard Malouf & Partners (GMP Law) and Carter Capner Law have initiated class action lawsuits against both retailers. The lawsuits claim that consumers were misled by false discount claims and seek compensation for affected shoppers.
Potential Compensation for Affected Consumers
The estimated compensation varies depending on shopping habits and the extent of purchases made during the affected period. GMP Law estimates that eligible consumers could receive refunds between $200 and $1,300. Carter Capner Law suggests that some households may claim between $2,000 and $5,000, depending on how much they spent on falsely promoted discounts.
Eligibility Criteria for Compensation
Consumers who shopped at Woolworths or Coles between September 2021 and May 2023 and purchased items labeled under promotions like “Prices Dropped” or “Down Down” may be eligible for compensation. Proof of purchase, such as receipts or transaction records, will likely be required to file a claim.
Legal Proceedings and Retailers’ Response
Both Woolworths and Coles acknowledge the legal actions and have stated their intent to defend against the allegations. The Federal Court proceedings are set to begin in March 2025. Consumer advocacy groups have urged greater transparency in supermarket pricing practices following these claims.
How to Participate in the Class Action
Affected consumers can register their interest with the law firms handling the lawsuits. GMP Law and Carter Capner Law are actively gathering evidence and encouraging customers to come forward to strengthen the case.
Implications for Australian Consumers
If the class actions succeed, the financial compensation could provide relief to Australian households struggling with rising living costs. These lawsuits also highlight the need for more transparency in supermarket pricing to ensure fair treatment of consumers.