1 week Ago By Varun Godinho
Weeks after the country’s two largest supermarkets, Coles and Woolworths, were taken to Federal Court by the Australian Competition & Consumer Commission (ACCC) over claims that it offered “fake” and “illusory” discounts, Sydney-based Gerard Malouf & Partners (GMP Law) has filed class-action lawsuits against them for allegedly promoting misleading discount claims on everyday products. GMP says that its lawsuits aim to secure “financial redress” for Australians, and the refunds may range between $200 to more than $1,300 in some cases for those who may have been misled by the supposed discounts. Woolworths says it has been notified that class action proceedings have been commenced by GMP, and added that it intends to defend itself against these proceedings.
While the ACCC is seeking penalties and community service orders that Woolworths and Coles must each fund a registered charity to deliver meals to Australians, it has stopped short of demanding direct customer refunds. GMP’s lawsuit goes one step further and is focused 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+, depending on their shopping habits and purchases at these retailers,” said Gerard Malouf, GMP Law’s chairman.
“We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide.” GMP has issued a statement saying that there is no cost for consumers in being registered with GMP’s class actions. It proposes to bring the class action on a ‘No Win-No Fee’ basis, which means GMP will not charge any professional legal fees or out-of-pocket expenses until the matter is successful.
In the ACCC’s Federal case against Woolies and Coles, which GMP is using as the base for its lawsuit against the two supermarkets, the ACCC claimed that they offered certain products at a regular price for at least 180 days. They then increased the price of the products by at least 15 per cent for a relatively short period of time, and subsequently placed it onto their ‘Prices Dropped’ or ‘Down Down’ programme. The ACCC’s court documents reveal that they fooled customers into buying everyday groceries with misleading discounts as high as 39 per cent.
The shopping list of fake discounts was discovered across dozens of categories including dairy, pet food, personal care, coffee, medicine, confectionery, breakfast cereal, snacks, household cleaning, pasta and soft drinks. Apart from GMP filing its lawsuit, another law firm, Cartner Law, is reported to be planning on pursuing a similar course of action. “Early estimates suggest that households could claim between $2,000 and $5,000, depending on the amount spent and the impact of the deceptive pricing,” Carter Capner law director Peter Carter said, adding that it had received an “avalanche of calls from outraged customers,” according to Yahoo!.
Woolworths and Coles combined account for 67 per cent of supermarket retail sales nationally, and are the subject of a separate Supermarket Inquiry. As part of those proceedings, executives from both entities will appear before the ACCC this month to answer questions in sessions that are being livestreamed on the competition regulator’s website..
