A class action lawsuit against two of the grocery giants Coles and Woolworths could lead to refunds for shoppers. Gerard Malouf Partners filed a lawsuit against them following the investigation from the consumer watchdog. According to the law firm, supermarkets misled consumers with supposed discounts. Meanwhile, the refund for every individual shopper would depend on their shopping. It could be around $200 to over $1300 depending on shopping.
Gerard Malouf & Partners stated that inaccurate pricing led consumers to pay more for products than they would have otherwise, resulting in potential financial losses.
Eligibility and How to Join the Latest Class Action Against Grocery Giants
The law firm Gerard Malouf & Partners has indicated that there is a specific timeframe during which Coles and Woolworths allegedly engaged in deceptive practices.
Individuals may qualify to join the class action and seek compensation if they:
- Shopped at Coles, either in-store or online in Australia, between February 2022 and May 2023, purchasing products labeled as “Price Dropped” or “Down Down.”
- Shopped at Woolworths, either in-store or online in Australia, during the same period and bought items marked “Price Dropped.”
Those interested in joining the Coles class action can register here, while those interested in the Woolworths action can register here. For those seeking to participate in the Carter Capner Law class action, registration details can be found here.
Focus of the Gerard Malouf & Partners Lawsuit
The lawsuit brought by Gerard Malouf & Partners centers on four main issues:
- Deceptive Pricing
- Breach of Australian Consumer Law
- Financial Impact on Consumers
- Misleading Savings Claims
Rationale Behind the Class Action
The Australian Competition and Consumer Commission (ACCC) initiated Federal Court proceedings against supermarket chains, prompting the class action.
The ACCC has accused the supermarkets of raising prices on some items by at least 15%. Meanwhile the wholesale costs of these products remained stable for at least six months to a year. Subsequently, these products were reportedly included in the supermarkets’ ongoing discount promotions — “Prices Dropped” at Woolworths and “Down Down” at Coles.
The ACCC alleges that Woolworths and Coles have led Australian consumers to believe “Prices Dropped” and “Down Down” mean real price reductions. However, the ACCC claims that, in some cases, the promotional prices were the same as or even higher than the regular prices.
The watchdog also suggests that both supermarkets had planned in advance to promote certain products as part of “Prices Dropped” or “Down Down” campaigns after temporarily raising their prices. This strategy, according to the ACCC, established an inflated “was” price that misrepresented the actual savings.
The ACCC alleges that Woolworths misled customers on the pricing of 266 products over a span of 20 months. Meanwhile, Coles did the same with 245 products over 15 months. It is estimated that the two supermarkets collectively sold tens of millions of these products, generating substantial revenue through these sales.