Grocery giants face court over price tricks

What's happened

The ACCC has accused Woolworths of using the Prices Dropped campaign to disguise price hikes, alleging 266 products were involved between 2021 and 2023. Coles and Woolworths face questions about timing, real savings, and the impact on shoppers. The case is ongoing in Federal Court.

What's behind the headline?

Analysis

The case hinges on whether the advertised savings are real or artificial. The ACCC contends that the third promoted price is higher than the original, making the discount illusory. Woolworths argues the increases reflected cost pressures and that the long-term price was genuine.
The outcome could redefine how promotional pricing is evaluated in Australia, potentially forcing retailers to demonstrate real reductions over a meaningful period.
Readers should watch for the court’s judgment and any changes to discount campaigns across major supermarkets.

How we got here

The ACCC has long scrutinised discount campaigns in Australia’s grocery sector, arguing that temporary price increases followed by promotions mislead consumers. Woolworths and Coles have defended their pricing strategies, citing inflation and supplier cost pressures. The case began in Sydney, with the court examining whether the discounts reflected genuine savings or marketing tactics.

Our analysis

The Guardian reports that the ACCC describes the promotions as marketing ‘magic’ and questions the legitimacy of the discounts. SBS covers the separate federal court hearings where Woolworths argues the analysis of a 'reasonable period' under pricing is flawed. Both outlets note the staggered timelines and the proportional impact on tens of millions of sales across hundreds of products.

Go deeper

What will the court determine about the length the was/is prices were in effect?
Are shoppers likely to see changes in discount advertising if the case rules against Woolworths?
Will similar scrutiny extend to Coles and other retailers?