Aussie law firm takes Woolworths, Coles to court over dodgy discount claims

(Reuters) -Australian law firm Gerard Malouf & Partners on Thursday said it had filed class action lawsuits against the country’s top two retailers, Woolworths and Coles, for allegedly encouraging misleading discount claims on everyday products.

The two supermarket giants are currently in court, sued by the consumer watchdog, for misleading shoppers about discounts on hundreds of products. The new class action tightens pressure on the sector reeling from a cost-of-living crisis.

The law firm said the proposed legal action aims to recover the price distinction between the alleged illusory discounted pricing and the original, undiscounted price.

These products were sold at Coles between February 2022 and May 2023, while shoppers bought such stuff from Woolworths between September 2021 and May 2023.

Coles and Woolworths did not immediately respond to Reuters’ request for comments.

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