Class action launched against Coles, Woolworths over alleged dodgy discounts

A consumer protection law firm has launched a class action against Coles and Woolworths, saying their allegedly misleading discount claims mean the average customer could be entitled to a refund of up to $1300.

Gerard Malouf and Partners (GMP Law) has lodged class action lawsuits against the two supermarket giants in federal court today over allegations the pair promoted misleading discount claims on hundreds of everyday products.

The action hopes to win back the difference between the alleged illusory discounted pricing and the original undiscounted price for items purchased 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 $200 and $1300+, depending on their shopping habits and purchases at these retailers," GMP Law chairman Gerard Malouf said.

"We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide."

It comes in light of the Australian Competition and Consumer Commission (ACCC) in September announcing it was taking Coles and Woolworths to court over their "Prices Dropped" and "Down Down" discounts.

The watchdog alleged the everyday items had been subjected to price hikes and the discounts were actually higher than or the same as the price before the increase.

GMP Law said its class action was unique to the ACCC proceedings as it is offering consumers refunds.

Australians can join the class action at PriceDropClassAction.com.au.