Class Action Lawsuit Against Australian Supermarkets

(Reuters) – An Australian consumer protection law firm has launched a class action lawsuit against the country's top two supermarkets, Woolworths and Coles, alleging misleading discount claims on everyday products.

The new class action tightens pressure on the sector, which is reeling from a cost-of-living crisis.

Both supermarket giants have also been sued by the consumer watchdog for misleading shoppers about discounts on hundreds of products.

Gerard Malouf & Partners announced on Thursday that an average customer who purchased such products from Coles between February 2022 and May 2023, and from Woolworths between September 2021 and May 2023, could be entitled to a refund of up to A$1,300 (approximately $840.25).

The law firm stated that the class action aims to recover the price difference between the alleged illusory discounted pricing and the original, undiscounted prices. It claims that everyday items at both Coles and Woolworths experienced price hikes, and the discounted prices were either higher than or the same as the prices before the increases.

Coles indicated that it had not received formal notice of the lawsuit in an emailed response to Reuters, while Woolworths did not immediately respond to requests for comments.

The supermarket giants have faced scrutiny from lawmakers and regulators for imposing high prices on consumers during a time when interest rates, housing costs, and energy bills have also sharply risen.

The law firm emphasized that its class action is distinct from that of the Australian Competition and Consumer Commission, as it seeks refunds for affected consumers.

> "We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide," said the law firm's chairman, Gerard Malouf.

Woolworths ended trading on Thursday down 0.4%, while Coles gained 0.2%.