US EditionCovid blamed for Woolies price hikes
The ACCC says Woolworths used temporary price rises and short promotion windows to make 266 products appear cheaper than they were.
- On Wednesday, former Woolworths Chief Commercial Officer Paul Harker testified in Federal Court as the supermarket battles an Australian Competition and Consumer Commission lawsuit alleging it misled shoppers with fake "Prices Dropped" discounts between September 2021 and May 2023.
- The ACCC claims Woolworths implemented short-term price rises of at least 15 per cent on 266 products before placing them on promotion, keeping the "discounted" price higher than or equal to the original cost.
- Harker told the court the supermarket changed internal guidelines to prevent suppliers from "gaming the system" amid rising inflation, shifting to a three to six-week "price trust policy" focused on customer value.
- Woolworths quietly discontinued the "Prices Dropped" program in December 2024 following the watchdog's lawsuit, replacing it with a "Lower Shelf Price" commitment promising lower prices for at least 12 weeks.
- The Federal Court proceedings against Woolworths are scheduled to run for two weeks, mirroring a similar ACCC case earlier this year where the supermarket competitor Coles faced accusations of misleading consumers with its "Down Down" pricing program.
10 Articles
10 Articles
Sydney Morning Herald
The AgeFormer Woolies exec denies internal rules changed because it was lying to shoppers
In the second day of Woolworths’ court stand-off with the consumer watchdog, some of the rules governing the “Prices Dropped” program have emerged.
Inside FMCG
insideretail.com.auHow court cases against Woolworths and Coles could change the future of shopping
The consumer watchdog’s Federal Court case against Woolworths over its “prices dropped” promotions is underway and will run into next week. This – and a separate court action against Coles – are crucial legal cases, with the potential for hundreds of millions of dollars in fines. Around two-thirds of all Australian supermarket sales are made at Woolworths or Coles. So most Australians are likely to have seen some of the disputed “discounts” bein…
Woolworths exec denies price increases a ‘whistlestop’ before drops
Save (0) Please login to bookmarkClose Username or Email Address Password Remember Me A Woolworths executive facing cross-examination in the ACCC’s case over alleged illusory discounts has denied that price increases were anything other than a reaction to inflation and a “tsunami” of supplier cost increase requests. Subscribe to Lawyerly to access this article.Already a subscriber? Username or Email Address Pass…
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