Two of Australia’s biggest supermarket chains, Woolworths and Coles, are facing legal action over allegations of false advertising practices. The claims state that the companies have been misleading consumers with fake discount promotions.
The Australian Competition and Consumer Commission (ACCC) has filed lawsuits against both companies, accusing them of using misleading pricing tactics to trick customers into thinking they are getting a better deal than they actually are. The ACCC alleges that Woolworths and Coles have been inflating the prices of products and then offering discounts that do not reflect the true savings, leading consumers to believe they are getting a bigger discount than they actually are.
This practice, known as drip pricing, is illegal under Australian consumer law. The ACCC is seeking penalties, declarations, and injunctions against the supermarket chains, as well as compensation for affected consumers.
The lawsuits come after the ACCC launched an investigation into the pricing practices of Woolworths and Coles in 2020. The investigation found evidence that both companies had engaged in misleading discounting practices, prompting the ACCC to take legal action.
Both Woolworths and Coles have denied the allegations, with Woolworths stating that it takes its obligations under consumer law seriously and is committed to delivering transparent pricing to its customers. Coles has also stated that it will vigorously defend the allegations.
The lawsuits against Woolworths and Coles highlight the importance of transparency in pricing practices and the need for companies to ensure that their promotional offers are accurate and not misleading to consumers. The outcome of these legal cases could have significant implications for how retailers in Australia promote discounts and sales in the future.
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