Australia's two biggest supermarket chains are heading 'down down' to federal court after allegedly misleading buyers with fake discounts and price gouging, according to consumer watchdog ACCC.
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00:00Down, down, prices are staying down, down.
00:04Australia's two biggest supermarket chains, Coles and Woolworths, are heading down, down
00:09to federal court after allegedly misleading buyers with fake discounts and price gouging
00:14on hundreds of products, according to consumer watchdog the ACCC.
00:19We allege that Woolworths and Coles offered the products at regular long-term prices for
00:26six months or more, then increased the price for a short period before placing the products
00:32on the Woolworths prices dropped promotion or the Coles down, down promotion at prices
00:39higher than or the same as the prior regular price.
00:44The Australian Competition and Consumer Commission today launched legal action against the grocery
00:48giants and called their price drop and discount claims misleading and illusory.
00:54As a result, the ACCC alleges that the price discounts as promoted were misleading because
01:01the discount was illusory.
01:04In addition, the ACCC alleges that in many cases, Woolworths and Coles planned the temporary
01:11price spike in order to establish a new higher was price for their was now price discount
01:18promotions.
01:19Aussies have vented their frustrations at supermarket price gouging, shrinkflation and
01:25massive profits posted by the chains as consumers deal with ongoing cost of living issues.
01:31Australians are not paying one cent more than they should when they go to a supermarket.
01:37The ACCC allegations relate to 266 products for Woolies over 20 months and 245 products
01:43for Coles across 15 months.
01:46Prices are down and staying down at Coles.
01:49It is seeking penalties, costs and community service orders for the supermarkets to fund
01:54charities that deliver meals to vulnerable Aussies.
01:57Coles has stated it will fight proceedings.
02:00Woolworths claimed it related to historical pricing schemes.