Consumer Watchdog Takes Legal Action Against Coles and Woolworths for Misleading Pricing Tactics
The Australian Competition and Consumer Commission (ACCC) is cracking down on major supermarket chains Coles and Woolworths for allegedly engaging in deceptive pricing practices. The watchdog claims that both retailers artificially inflated prices before promoting discounts under their ‘Prices Dropped’ and ‘Down Down’ campaigns, misleading consumers about the actual savings.
Allegations Against Coles and Woolworths
- ACCC alleges that prices on certain products were raised by at least 15% for short periods before being included in promotional campaigns.
- The supermarkets are accused of manipulating prices to establish higher ‘was’ prices before offering discounts.
- Woolworths is implicated in 266 products over 20 months, while Coles is involved in 245 products over 15 months.
Impact on Consumers
- Many consumers rely on discounts during challenging economic times.
- Misleading pricing tactics hinder consumers’ ability to make informed purchasing decisions.
Legal Action and Penalties
- ACCC seeks penalties, costs, and court-ordered declarations against Coles and Woolworths.
- The watchdog also proposes community service orders for the supermarkets to support registered charities in providing meals to those in need.
Response from Woolworths
- Woolworths pledges to review ACCC’s claims and collaborate with the watchdog.
- The retailer emphasizes its commitment to delivering genuine value to customers through various savings programs.
Specific Examples of Misleading Pricing
- Products affected include popular brands like Arnott’s, Kellogg’s, Colgate, and Coca-Cola.
- Instances of price manipulation on items like Oreo cookies and Strepsils lozenges are highlighted.
Potential Penalties
- Maximum penalty for breaching Australian Consumer Law is $50 million or three times the benefit obtained.
- Penalties could also amount to 30% of the corporation’s adjusted turnover during the breach period.
In conclusion, the ACCC’s legal action against Coles and Woolworths sheds light on the importance of transparent pricing practices in protecting consumer rights. By holding retailers accountable for misleading tactics, the watchdog aims to ensure that Australian consumers can trust the value they receive while shopping. This case emphasizes the significance of regulatory oversight in maintaining fair competition and safeguarding consumer interests in the marketplace.