Woolworths and Coles Group Class Action

(Reuters) – Woolworths and Coles Group (OTC:CLEGF) announced on Friday their intention to defend against class action proceedings initiated by a law firm in Australia’s federal court concerning alleged misleading discount claims.

On Thursday, Gerard Malouf & Partners filed a lawsuit against Australia’s leading supermarkets, Woolworths and Coles, accusing them of promoting misleading discount claims on everyday products.

Earlier in September, Australia’s consumer watchdog filed a lawsuit against the supermarket chains over “illusory” discounts, alleging that they had profited from revenue on millions of product units affected.

Australian prime minister Anthony Albanese, facing pressures regarding rising grocery prices, stated that the regulator’s allegations would be unacceptable if proven true.

Gerard Malouf & Partners clarified that their lawsuit differs from that of the Australian Competition and Consumer Commission (ACCC), as they aim to secure refunds for affected customers.

The consumer protection law firm indicated that the lawsuit seeks to compensate for the price discrepancies consumers faced between the advertised 'discounted' prices and the actual prices for hundreds of commonly purchased products at Coles from February 2022 to May 2023, and at Woolworths from September 2021 to May 2023.

Gerard Malouf, the law firm’s chairman, stated, "We estimate that the average Australian consumer could be eligible for a refund ranging from A$200 to A$1,300+, depending on their shopping habits and purchases at these retailers."

The law firm alleges that everyday items at both retailers have experienced price increases, with discounted prices being equal to or higher than previous prices.