Woolworths and Coles intend to defend the class action proceedings. Credit: Haireena/Shutterstock.

Law firm Gerard Malouf & Partners launched class action proceedings against Australian supermarket giants Coles and Woolworths in mid-November 2024. 

The lawsuit, filed in the Federal Court of Australia, follows allegations that both retailers misled consumers with their “Prices Dropped” and “Down Down” campaigns. 

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The class action is related to accusations currently under scrutiny by the country’s regulator, the Australian Competition and Consumer Commission (ACCC).  

In September, the ACCC sued both supermarkets, claiming that their promotional campaigns falsely implied substantial discounts when in fact products were being sold at regular prices for lengthy periods before the promotions. 

The latest class action aims to reclaim the difference between the purported discounted prices and the actual, regular prices, as reported by Reuters. 

Gerard Malouf & Partners stated that an average customer who bought such products from Coles between February 2022 and May 2023, and from Woolworths between September 2021 and May 2023, might be eligible for a refund of up to A$1,300 ($840.25).  

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Woolworths Group has expressed its intention to defend the claims.  

Coles, which announced plans to defend the ACCC’s proceedings on 23 September 2024, is also defending the proceedings initiated by Gerard Malouf & Partners. 

Despite the legal challenges, shares of Woolworths saw an increase of as much as 1.1%, marking their best intra-day percentage gain since 8 November, while Coles shares rose by 1.2%. 

The class action comes amidst growing public distrust towards Coles and Woolworths. An interim report released by the ACCC in September 2024 revealed that many Australians feel betrayed by the supermarkets.  

The report is part of a year-long inquiry established by Prime Minister Anthony Albanese in January 2024 to investigate the market dominance of the two retailers and explore potential barriers for new entrants into the sector.