Australia's Woolworths, Coles face class action over dodgy discount claims

(Reuters) -An Australian consumer protection law firm has launched a class action lawsuit against the country's top two supermarkets, Woolworths and Coles, alleging the retailers promoted misleading discount claims on everyday products.

The new class action tightens pressure on the sector reeling from a cost-of-living crisis.

The two supermarket giants have also been sued by the consumer watchdog for misleading shoppers about discounts on hundreds of products.

Gerard Malouf & Partners on Thursday said an average customer, who purchased such products from Coles between February 2022 and May 2023 and at Woolworths between September 2021 and May 2023, could be entitled to a refund of up to A$1,300 ($840.25).

The law firm said the class action aims to recover the price distinction between the alleged illusory discounted pricing and the original, undiscounted price.

It is alleging that everyday items at both Coles and Woolworths had been subject to price hikes and the discounted prices were either higher or same as the price before the increase.

Coles had not received formal notice of the lawsuit, it said in an emailed response to Reuters. Woolworths did not immediately respond to a request for comments.

The supermarket giants have faced scrutiny from lawmakers and regulators for hitting consumers with high prices at a time when interest rates, housing costs and energy bills have also risen sharply.

The law firm said its class action was different from the Australian Competition and Consumer Commission's as it will be seeking refunds for affected consumers.



"We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide," the law firm's chairman, Gerard Malouf, said.

Woolworths ended trading on Thursday 0.4% lower, while Coles gained 0.2%.

Source: Investing.com