Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), has initiated legal action against the nation’s two largest supermarket chains, Coles and Woolworths, alleging they misled consumers by falsely advertising price reductions on hundreds of products.
The ACCC claims that the supermarkets engaged in deceptive practices by temporarily increasing prices before lowering them to levels that were either the same as or higher than the original prices. This practice reportedly affected 266 products at Woolworths over 20 months and 245 products at Coles over 15 months, covering a range of items including pet food, household goods, and popular Australian snacks.
Both supermarket chains, which together control about two-thirds of Australia’s grocery market, have faced mounting scrutiny over price gouging and anti-competitive behavior in recent months. In response to the lawsuit, Coles announced its intention to defend itself against the allegations, while Woolworths stated it would review the claims.
Prime Minister Anthony Albanese criticized the alleged practices, describing them as “completely unacceptable” and emphasizing that consumers deserve fair treatment. He introduced draft legislation aimed at creating a mandatory code of conduct for supermarkets, which would include stricter regulations to protect both consumers and suppliers.
“Many consumers rely on discounts to help their grocery budgets stretch further, particularly during this time of cost-of-living pressures,”stated ACCC Chair Gina Cass-Gottlieb.
She also highlighted the importance of trust in pricing.
The ACCC is seeking significant penalties from the supermarkets and has also called for increased support for charitable meal delivery programs.
Both companies acknowledged the rising costs of goods but emphasized their commitment to balancing price management with consumer value. The ACCC’s action follows a broader review of the food and grocery sector in Australia, which has prompted calls for enhanced oversight and accountability in pricing practices.
With input from BBC, Financial Times, and the Wall Street Journal.
