Supermarket Discount Case Moves Toward Court Proceedings

The legal case involving Coles, Woolworths and the Australian Competition and Consumer Commission (ACCC) is progressing as all parties have now agreed on key facts about alleged misleading discounts on hundreds of everyday grocery items.

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Pick & Scroll News
June 16, 2025

The legal case involving Coles, Woolworths and the Australian Competition and Consumer Commission (ACCC) is progressing as all parties have now agreed on key facts about alleged misleading discounts on hundreds of everyday grocery items. This agreement allows the ACCC to present its argument in court that the supermarkets used deceptive pricing tactics that gave customers the false impression of savings, which may breach consumer laws.


The ACCC alleges that Coles and Woolworths promoted about 250 products as being on discount after first increasing their prices. The Commission says this approach was part of a broader strategy to misuse marketing campaigns and mislead consumers into believing they were receiving better deals. These promotions relate to well-known pricing campaigns such as "Prices Dropped" and "Down Down" which were active between 2021 and 2023.


According to the agreed list, Woolworths conducted 276 such promotions while Coles ran 255. These involved more than 500 products including soft drinks, pet food and pantry staples. In several instances the so-called discounted price was higher than what shoppers had paid months or even years earlier. For instance, legal documents show that a bottle of Sprite was offered at a discounted price that was actually 33% higher than its earlier shelf price. Similarly, a bottle of Coca-Cola at Coles was marketed as a reduced-price item despite costing 28% more than it had before.


The ACCC is raising concerns that these pricing methods may weaken public trust and violate fair trading standards. Coles and Woolworths argue that the price adjustments reflected supplier input and followed standard industry practices. However, the ACCC insists the pricing approach created an artificial perception of value.


To keep the case manageable, the Court is expected to begin with a test trial using a sample of 12 to 16 products instead of reviewing all 250 at once.