Coles, Woolworths to defend class actions over discount promotions

Coles and Woolworths said they will defend the class action proceedings a law firm has filed in the Federal Court of Australia concerning the supermarket chains’ allegedly false discounts.

Gerard Malouf & Partners filed a class action against Coles and Woolworths, seeking to recover funds for consumers who may have been deceived by the fake price drops on the items sold in their stores.

“Coles announced on September 23 that it is defending the ACCC proceedings and also intends to defend the proceedings commenced by Gerard Malouf & Partners,” said a statement from the supermarket group.

“Woolworths Group intends to defend the class action proceeding,” said Woolworths.

The class action relates to the Australian Competition and Consumer Commission (ACCC)’s allegations that the supermarkets increased the prices of the products by 15 per cent for a brief period before being subjected to Woolworths’ ‘Prices Dropped’ and Coles’ ‘Down Down’ promotions.

The ACCC filed separate proceedings in the Federal Court against Woolworths and Coles but is not seeking compensation for affected consumers. The law firm’s case is to force payouts to shoppers.

The post Coles, Woolworths to defend class actions over discount promotions appeared first on Inside Retail Australia.