Australia’s grocery goliaths are fighting back in court against allegations they fooled customers with bogus bargains. In new legal filings, Coles and Woolworths vehemently deny the Australian Competition and Consumer Commission’s claims that their discounts on popular products like Strepsils and Oreos were nothing but an illusion.
Supermarkets Say Price Hikes Were Justified
The ACCC kicked off legal proceedings in late 2024, accusing the supermarket chains of briefly jacking up prices on hundreds of everyday items before slashing them in promotions to give the impression of deep discounts. But Coles and Woolworths argue the initial price increases were warranted due to surging costs from suppliers.
“The non-promotional price was a genuine, undiscounted shelf price,” Coles stated in court documents, adding that the subsequent markdown therefore represented a “genuine discount” and was not illusory as the ACCC alleges. Woolworths echoed this stance, pointing to supplier price hike requests as justification for boosting the regular retail cost of some goods.
Strepsils and Oreos in the Spotlight
The consumer watchdog specifically called out what it deemed deceptive deals on Strepsil throat lozenges and Oreo cookies. For instance, the ACCC claims Coles:
- Displayed a six-pack of honey and lemon Strepsils at a regular price of $5.50
- Bumped the price up to $7 for 28 days
- Then promoted the lozenges at a “discount” of $6
But Coles counters that this elevated price “superseded” the old cost, thus making the markdown a legitimate bargain in its view. Similarly, Woolworths admitted it previously promoted Oreos at $3.50, later sold them for $5 after a supplier price increase, then offered the cookies at $4.50 on promotion following re-negotiation with the vendor.
Crackdown Amid Cost of Living Crisis
The ACCC’s hard-line approach comes as sky-high grocery bills emerge as a key election issue, with food prices soaring and drawing intense scrutiny of major retailers’ practices. The Commission is pushing for stiff penalties, alleging Coles and Woolworths reaped massive profits from promotions on tens of millions of items by misleading consumers about the savings.
“The ACCC has previously indicated to the court that the reasons the supermarkets gave for their promotional pricing didn’t change its view that the conduct was misleading.”
— According to a source close to the legal proceedings
With household budgets stretched to breaking point, the court battle over what constitutes a genuine grocery deal versus an illusion is sure to be followed closely by cost-conscious consumers and policymakers alike. As the case progresses, Coles and Woolworths will need to convince the court their discounts delivered real value—or potentially face hefty fines for breaching consumer law.
