18,000 Aussies have joined the class action lawsuits against Woolworths and Coles. They are upset about the supermarkets’ discount strategies. Legal firms say they’ve had a flood of calls from angry customers.
The lawsuits come from an ACCC investigation. They claim Woolworths and Coles raised prices by at least 15% for a year. Then, they offered discounts, tricking shoppers.
The ACCC found Woolworths used 266 products for 20 months. Coles used 245 products for 15 months. The watchdog says the supermarkets sold “tens of millions” of these products, making a lot of money.
People could get $200 to over $1,300. Law firms Carter Capner Law and Gerard Malouf & Partners think households could get $2,000 to $5,000. This depends on how much they spent and how the prices affected them.
To get the money, shoppers must show they bought “Priced Dropped” or “Down Down” items at Coles or “Priced Dropped” items at Woolworths. This must have been between February 2022 and May 2023, in-store or online.
Major Highlights
- 18,000 Aussies have signed up for class action lawsuits against Woolworths and Coles over alleged price manipulation
- Legal firms are receiving thousands of enquiries hourly about possible compensation
- Alleged misconduct involved raising prices for 6-12 months before starting “Dropped Price” promotions
- Estimated compensation ranges from $200 to $5,000 per household based on spending and impact
- Shoppers must prove purchases of affected “Priced Dropped” or “Down Down” items between Feb 2022 and May 2023
ACCC Investigation Reveals Alleged Price Manipulation by Major Supermarkets
The Australian Competition and Consumer Commission (ACCC) has started legal actions against Woolworths and Coles. These are Australia’s biggest grocery chains. The investigation found that they might have changed prices unfairly for over a year and a half. They sold millions of products in this way.
Duration and Scale of Price Inflation Claims
The ACCC says Woolworths made false price claims on 266 products from September 2021 to May 2023. Coles is accused of similar actions on 245 products from February 2022 to May 2023. Both chains made a lot of money from these products.
Products Affected by Misleading Pricing Strategies
The ACCC found 266 Woolworths and 245 Coles products with unfair prices. These were in special sales like Woolworths’ “Prices Dropped” and Coles’ “Down Down”. The prices were set to look like a big discount, but it was a trick.
Revenue Impact and Consumer Deception
Woolworths and Coles made a lot of extra money by changing prices unfairly. For example, a product was sold for $4.50, but it looked like it was $5.00 before. This was 29% more than its usual price of $3.50. It shows how supermarkets might trick customers.
The ACCC’s actions show we need to watch the grocery industry more closely. We want to make sure prices are fair. If not, big fines could be a warning to other stores to be honest.
“The ACCC alleges that the major supermarkets have engaged in misleading pricing practices that have deceived Australian consumers, and we will be seeking substantial penalties if our case is successful.”
This lawsuit against Woolworths and Coles is important for a fair supermarket market. We want to make sure we get what we pay for. The outcome of this case will change the grocery industry in Australia.
Understanding the Class Action Lawsuit Against Supermarket Giants
Two big Australian law firms, Carter Capner Law (CCL) and Gerard Malouf & Partners (GMP), have started class action lawsuits against Woolworths and Coles. They want to help consumers who were tricked by the supermarkets’ pricing manipulation strategies. The Australian Competition and Consumer Commission (ACCC) is also looking into this.
The lawsuits are for people who bought things at Coles or Woolworths between February 2022 and May 2023. They bought items marked as “Priced Dropped” or “Down Down.” The law firms say the supermarkets broke the Australian Consumer Law by lying about prices.
It’s thought that people who bought these items could get $2,000 to $5,000 back. If you think you were tricked, you can sign up with the law firms. This way, you’ll know about the lawsuit and how you might get money back.
Woolworths and Coles say they will fight the lawsuits. But the lawsuits want to make sure the supermarkets are fair to customers. They want to keep consumer protection important in Australia.
“The class action seeks to secure compensation for consumers who have been impacted by the alleged pricing manipulation strategies of Woolworths and Coles, which have been under investigation by the ACCC.”
Compensation Estimates and Eligibility Requirements
Australians are keen to know how much they might get from the Woolworths and Coles class action lawsuits. Law firms Carter Capner Law (CCL) and Gerard Malouf & Partners (GMP) have shared how they plan to give out money to those who qualify.
Carter Capner Law Compensation Framework
CCL says the money you could get is between $2,000 and $5,000. This depends on how much you spent and how Woolworths and Coles’ actions affected you. They think the supermarkets’ tricks might have cost you a lot over the last two years.
Gerard Malouf & Partners Payment Structure
GMP, on the other hand, thinks you might get between $200 and over $1,300. They look at your shopping habits and situation to give you a fair share.
Timeline for Eligible Claims
The time frames for when you can claim are a bit different for each firm. CCL covers shopping at Woolworths or Coles from September 2021 to May 2023. GMP’s period is from February 2022 to May 2023 for both stores. You can sign up online with both to join the claims.
The exact amount you get will depend on your case and how well the lawsuits do. Both CCL and GMP want people to join to fight for their rights to tort reform and equitable relief.
Legal Firms Leading the Multi-Party Lawsuit Campaign
Two top legal firms, Carter Capner Law (CCL) and Gerard Malouf & Partners (GMP), are leading the charge against Woolworths and Coles. They are taking on the supermarkets in class action lawsuits.
CCL was initially not planning on a class action. But, after many customers asked for legal action, they changed their minds. Peter Carter, CCL’s law director, says customer anger and feeling betrayed pushed them to start the lawsuit.
Gerard Malouf, GMP’s chairman, believes in the class action for consumer rights and clear retail practices. “Australians should know they’re getting fair prices at the supermarket,” Malouf said. “This lawsuit aims to make these big chains answer for their actions.”
Both CCL and GMP are now collecting interest from people who want to join the lawsuit. They invite those affected to sign up on their websites against Woolworths and Coles.
| Legal Firm | Specialization | Recognition |
|---|---|---|
| Carter Capner Law | Class action lawsuits, consumer protection | Experienced in high-profile class actions |
| Gerard Malouf & Partners | Commercial litigation, consumer rights | Recognized for championing consumer interests |
“Australians deserve to know that they are paying fair prices at the supermarket. This class action is about holding these major chains accountable for their actions.”
– Gerard Malouf, GMP Law Chairman
Supermarket Responses and Consumer Protection Measures
Coles and Woolworths are facing class action lawsuits. Coles says it will fight the case brought by the Australian Competition and Consumer Commission (ACCC). But it hasn’t been told about the lawsuit by Gerard Malouf & Partners (GMP) yet.
Coles Group chairman James Graham says the company has worked on nine reviews with the government and ACCC in the last year. This shows Coles is taking steps to protect consumers. Woolworths, though, has chosen not to talk about the legal issues.
The class action lawsuits could help Australian shoppers get compensation not covered by ACCC actions. Yet, experts are unsure how these fines will affect the supermarkets’ future actions.
