Coles Price Drop Class Action
Gerard Malouf and Partners have filed proceedings in the Federal Court of Australia against Coles regarding allegedly misleading promotional pricing practices. The class action, filed on November 13, 2024, seeks to recover funds for consumers who may have been misled by supposed discounts on hundreds of commonly purchased products. This is a potential breach of Australian Consumer Law.
This class action follows the Australian Government’s formal directive to the ACCC to conduct a supermarket inquiry, on February 1, 2024. Unlike the ACCC’s proceedings which seek penalties but offer no direct consumer refunds, GMP Law specifically aims to win back the difference between advertised discounted prices and the real prices paid by consumers.
Current status
GMP Law’s class action investigation was launched following proceedings commenced by the ACCC against Coles (and Woolworths) on 23rd September 2024. The proceedings against Coles are for allegedly misleading consumers through discount pricing claims on hundreds of common supermarket products.
The class action has been officially filed in the Federal Court of Australia, seeking financial redress for affected consumers who purchased products at Coles between February 2022 and May 2023.
GMP Law Chairman, Gerard Malouf, states, “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 is awaiting court-ordered scheduling and is working to align with the ACCC proceedings. They will continue to investigate and strengthen their case.
Key developments
On 27 September 2024, the ACCC released their Interim Report for the Supermarkets Inquiry.
It revealed:
- The Australian supermarket sector is dominated by an oligopoly
- Coles and Woolworths account for 67% of supermarket retail sales nationally
- The price of a typical basket of groceries has increased by more than 20% in the past five years.
In response to these findings, GMP Law has launched a class action to secure financial redress for Australian consumers affected by potentially misleading discount practices. This was filed in the Federal Court of Australia on 13 November 2024.
About the class action
This class action addresses serious allegations against Coles regarding their pricing and promotional practices. The lawsuit centres on the company’s alleged misleading conduct in advertising discounts on 245 various supermarket products, which has potentially led to financial losses for consumers.
The core issues of this potential class action include:
Misleading and deceptive conduct: Coles is accused of promoting products with “Prices Dropped” and “Down Down” labels that were potentially false or misleading.
Breach of Australian Consumer Law: The lawsuit alleged that Coles engaged in conduct that contravenes the Australian Consumer Law by making false or misleading representations about price.
Financial harm to consumers: There are claims that consumers suffered financial losses by paying more for products than they would have if the pricing had been accurately presented.
Failure to provide genuine discounts: Coles is accused of not offering real price reductions despite advertising products as discounted.
The issue
The class action alleges that Coles promoted products with “Prices Dropped” and “Down Down” labels, claiming discounts that were potentially misleading or non-existent.
Alleged affected products
The following products have been alleged to be affected, as detailed in the Concise Narrative Statement filed by the ACCC in Federal Court to initiate proceedings:
Product list
Arnott’s Shapes biscuits
Band-Aids
Bega cheese
Cadbury chocolates
Coca Cola soft drink
Colgate toothpaste
Danone yoghurt
Dettol multi-purpose wipes
Fab laundry liquid
Karicare formula
Kellogg’s snack bars
Kleenex tissues
Libra tampons
Lurpak butter
Maggi two-minute noodles
Nature’s Gift dog food
Nescafe instant coffee
Palmolive shampoo
Rexona deodorant
Sakata rice crackers
Sanitarium Weet-Bix cereal
Strepsils lozenges
Sunrice rice
Tena pads
Viva paper towels
Whiskas cat food
Zafarelli pasta
NB: This is not an exhaustive list, and additional products may be included as the investigation progresses.
Financial impact
Consumers have paid more for products than they would have if the pricing had been accurately represented, resulting in potential financial losses.
What’s next?
GMP Law will continue to investigate the claims, gather evidence, and prepare for potential legal proceedings against Coles. The firm will also monitor the progress of the ACCC’s Supermarkets Inquiry, which is set to provide a final report by February 28, 2025.
Are you eligible for compensation?
You may be eligible to join the class action and claim compensation if:
- You shopped at Coles in Australia, in-store or online, between February 2022 and May 2023
- Purchased products marked as “Priced Dropped” or “Down Down”.
To register your interest:
- Gather any evidence
- Register with GMP Law.
How are we collecting evidence to substantiate our Price Drop Class Action?
To substantiate our class action, we are gathering evidence in several key ways. The Australian Competition and Consumer Commission (ACCC) has alleged that Woolworths was involved with 266 products over a span of 20 months, and Coles with 245 products over 15 months.
Our investigation will focus on obtaining records from potential class members, including the date and time of purchases and the prices paid.
Helpful evidence to support your claim includes:
1. Rewards program data
Collecting data from Woolworths and/or Coles Rewards programs, which track:
- Time and date of purchases
- Pricing information
- Discounts applied.
2. Receipts
Gathering receipts for discounted products as proof of purchase.
3. Statutory declaration
If the matter is successful and people do not have their receipts but have been affected by the pricing and suffered loss, they will be able to make a claim via statutory declaration.
Risk-free participation
There is no financial risk in registering with our firm and becoming a class member. We operate on a No Win No Fee basis. You will not incur any legal fees unless we win your case. If successful, the court may order the defendant to cover your legal fees and out-of-pocket expenses.
If the claim is unsuccessful, you will not be personally liable for any costs.
Take action today to ensure your rights are represented and to pursue the compensation you deserve.
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