Australia’s two largest supermarket chains, Coles and Woolworths, are facing a lawsuit over allegations of misleading customers with fake discount claims. The lawsuit, filed by the Australian Competition and Consumer Commission (ACCC), accuses the two companies of engaging in misleading advertising practices that deceive consumers into thinking they are getting a better deal than they actually are.
The ACCC alleges that Coles and Woolworths inflated the prices of certain products before offering them at a discounted price, leading customers to believe they were receiving a larger discount than they actually were. This practice, known as ‘drip pricing’, involves gradually revealing additional charges throughout the purchasing process, ultimately resulting in a higher final price than expected.
According to the ACCC, both Coles and Woolworths have engaged in this deceptive practice since at least 2015, resulting in millions of dollars in fines for the companies. The lawsuit seeks financial penalties, injunctions to prevent further misleading advertising, and corrective advertising to inform consumers of the true nature of the discounts being offered.
Both Coles and Woolworths have denied the allegations and stated that they will vigorously defend themselves in court. They argue that their discount practices are in line with industry standards and that they are committed to providing transparent pricing to their customers.
The outcome of this lawsuit could have significant implications for how retailers in Australia and around the world advertise their discounts and promotions. It serves as a reminder for companies to ensure that their marketing practices are in compliance with consumer protection laws to avoid facing legal action and damaging their reputation.
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