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Class action looms large,
Woolworths Group in the spotlight,
Courtroom battles start.
Coles, Woolworths to defend class action proceedings over misleading discounts
Supermarket giants Coles and Woolworths have this morning confirmed their intentions to defend class action proceedings brought against both companies by consumer protection law firm Gerard Malouf and Partners.
On Wednesday, the law firm filed two separate proceedings with the Federal Court regarding allegedly misleading promotional pricing practices. The lawsuits will seek to recover funds for consumers who Gerard Malouf and Partners said may have been misled by supposed discounts on hundreds of commonly purchased products in a potential breach of Australian Consumer Law.
Chairman, Gerard Malouf , said: “We estimate that the average Australian consumer could be eligible for a refund ranging between $200 and $1,300+, depending on their shopping habits and purchases at these retailers. We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide”.
GMP Law seeks to return money directly to affected shoppers by recovering the difference between the advertised discount prices and the actual prices charged.
It is separate to the ongoing Federal Court case filed by the ACCC in September, which came six months after the Australian Government instructed the consumer watchdog to conduct a supermarket inquiry. The case regards Woolworths and Coles respective ‘Prices Dropped’ and ‘Down Down’ claims, which were alleged to be misleading.