They alone account for more than 80% of the packaged grocery market in Australia. The two largest retailers, Coles and Woolworths, have been accused of running false promotions on hundreds of items.
The Australian Competition and Consumer Commission (ACCC) has alleged that Coles and Woolworths deliberately raised their prices temporarily in order to justify promotions of equal or even greater value on certain products.
“This is not in the Australian spirit”
Prime Minister Anthony Albanese spoke about the issue at a press conference, saying that if the practice is proven, it would be “totally unacceptable”.
“This is not the Australian spirit. Customers do not deserve to be treated like idiots,” he said, pledging to enforce his bill establishing a “code of conduct” for supermarkets.
The investigation carried out over the past 12 months following the allegations revealed that Woolsworth, for example, misled its customers on almost 266 products over 20 months. Coles, meanwhile, misled 245 items over a 15-month period. Cereals, cheeses, feed, but also dressings and mouthwashes… all departments have been affected.
“Many consumers rely on discounts to help stretch their grocery budget even further, particularly at this time of cost-of-living pressures,” argued Gina Cass-Gottlieb, chair of the ACCC, highlighting the “significant revenue” earned by the two brands thanks to these products sold in the “tens of millions”.
The ACCC is demanding “significant” sanctions from the Federal Court of Australia, as well as an order forcing Coles and Woolworths to strengthen their charitable meal delivery programs.
A balance to be found
Both brands seem to be playing the inflation card in this matter. Coles, for example, has justified in a press release that the increase in its costs has had an impact on its prices. It claims that it wanted to rebalance the promotions “as soon as possible” after the new prices were set, and “attaches great importance to establishing a climate of trust with all interested parties.”
While Coles has said it will defend itself in court, Woolworths has simply said it will examine the allegations more closely with the ACCC.
Source: BFM TV
