ACCC Sues Coles and Woolworths Over Allegations of Illusory Discounts
The ACCC is suing Coles and Woolworths for allegedly misleading shoppers with illusory discounts, raising serious concerns about supermarket pricing practices and consumer rights in Australia.
Illusory Discounts: ACCC Sues Coles and Woolworths Over Shocking Allegations
Good afternoon. The Australian Competition and Consumer Commission (ACCC) has launched a lawsuit against grocery giants Coles and Woolworths, accusing them of misleading consumers with “illusory” discounts on hundreds of everyday products. According to ACCC chair Gina Cass-Gottlieb, the regulator aims to impose “a significant penalty” on the major retailers for allegedly inflating prices temporarily before lowering them back to levels that are either the same or higher than their original prices.
Prime Minister Anthony Albanese has weighed in on the allegations, stating that if proven true, the behavior of these supermarkets would be “completely unacceptable.” He emphasized the importance of genuine advertised discounts, saying, “Advertised discounts need to be genuine – each and every time.”
In conjunction with the ACCC’s legal action, the government has also released an exposure draft of a new mandatory Food and Grocery Code. This code aims to impose multimillion-dollar fines on supermarkets found guilty of price-gouging and engaging in anti-competitive practices. The move reflects growing concerns over the transparency and fairness of pricing strategies employed by major retailers in Australia.
As the case unfolds, consumers and industry stakeholders will be closely watching the implications for supermarket pricing practices across the nation.
