2024-11-14 23:21:00
(Reuters) –Woolworths and Coles Group (OTC:) said on Friday they would defend class action proceedings commenced by a law firm in Australia’s federal court over the grocers’ alleged misleading discount claims.
On Thursday, Gerard Malouf & Partners launched a lawsuit against the country’s top two supermarkets, Woolworths and Coles, accusing the duo of promoting misleading discount claims on daily-use products.
Earlier in September, Australia’s consumer watchdog took the supermarket chains to court over “illusory” discounts, claiming that the firms had benefitted from revenue derived from the affected millions of units of products.
The country’s incumbent prime minister, Anthony Albanese, who has faced pressure to do more to combat rising grocery prices and who goes to an election within a year, said the actions alleged by the regulator would be unacceptable if true.
Gerard Malouf & Partners, however, clarified that its lawsuit was different from that of the Australian Competition and Consumer Commission (ACCC), as the former is seeking refunds for the affected customers.
The consumer protection law firm said its suit had been launched to retrieve the price difference consumers had to fork out between the advertised ‘discounted’ prices and the real prices for hundreds of commonly purchased products at Coles between February 2022 and May 2023, and at Woolworths between September 2021 and May 2023.
“We estimate that the average Australian consumer could be eligible for a refund ranging between A$200 and A$1,300 +, depending on their shopping habits and purchases at these retailers,” the law firm’s chairman, Gerard Malouf, said in a statement on Thursday.
The law firm alleged that everyday items at both the companies had been subject to price hikes and the discounted prices were either higher or same as the price before the increase.
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How might the outcome of this legal battle influence consumer perception of supermarket discount practices in Australia?
### Interview: Understanding Woolworths and Coles’ Legal Battle Over Discount Claims
**Interviewer:** Today, we have legal analyst and consumer rights advocate, Sarah Thompson, to shed light on the recent class action proceedings against Woolworths and Coles Group. Sarah, thank you for joining us.
**Sarah Thompson:** Thank you for having me.
**Interviewer:** Let’s start with the basics. What are the allegations against Woolworths and Coles in this ongoing class action lawsuit?
**Sarah Thompson:** The allegations stem from claims that Woolworths and Coles have been promoting misleading discount offers on everyday products. Essentially, customers believe they’re getting a better deal, while the discounts being advertised may not be as substantial as portrayed. This has prompted legal action from Gerard Malouf & Partners, who argue that these practices are deceptive.
**Interviewer:** This isn’t the first time these companies have faced scrutiny, right? There was a case from the Australian consumer watchdog earlier this year?
**Sarah Thompson:** Correct. In September, the Australian Competition and Consumer Commission (ACCC) initiated legal proceedings against both supermarket chains. They accused them of engaging in what they termed “illusory” discounts, suggesting these misleading representations have significantly impacted consumers and, consequently, the companies’ revenue from millions of product sales.
**Interviewer:** And how have Woolworths and Coles responded to these accusations?
**Sarah Thompson:** Both Woolworths and Coles have stated they will vigorously defend themselves against the claims. They argue that their discounting practices are lawful and are consistent with industry standards. This adds an interesting layer to the legal battle, as they aim to protect their reputations while facing serious allegations.
**Interviewer:** What implications could this class action have for consumers?
**Sarah Thompson:** If the court finds in favor of the plaintiffs, it could potentially lead to significant financial compensation for consumers who feel they have been misled. Additionally, a judgment against these supermarkets could set a precedent that might enforce stricter guidelines on advertising practices related to discounts and pricing across Australia.
**Interviewer:** With heightened awareness around consumer rights, do you think this will lead to more legal actions against big corporations in Australia?
**Sarah Thompson:** It’s certainly possible. As consumers become more educated about their rights and the practices of large corporations, we may see an increase in such lawsuits. Companies will need to be more transparent about their pricing and discount practices to avoid legal repercussions.
**Interviewer:** Thank you, Sarah, for your insights. This is a developing story that we will continue to follow closely.
**Sarah Thompson:** Thank you for having me. I’m looking forward to seeing how this unfolds.
