Woolworths Price Drop Class Action
Gerard Malouf and Partners have filed proceedings in the Federal Court of Australia against Woolworths 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 ongoing ACCC proceedings, which focus on regulatory penalties, this class action specifically aims to secure consumer compensation. GMP Law seeks to return money directly to affected shoppers by recovering the difference between the advertised discount prices and the actual prices charged.
Current status
GMP Law’s class action investigation was launched in response to proceedings initiated by the ACCC against Woolworths (and Coles) on 23rd September 2024. The proceedings against Woolworths are for allegedly misleading consumers through discount pricing claims on numerous everyday supermarket products.
he class action has been officially filed in the Federal Court of Australia, seeking financial redress for affected consumers who purchased products at Coles between September 2021 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
- Woolworths and Coles together control 67% of the national supermarket retail sales
- Grocery prices have risen significantly, with a typical basket of goods costing over 20% more than it did five years ago.
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 Woolworths regarding their pricing and promotional strategies. The lawsuit focuses on the company’s alleged misleading conduct in advertising discounts on 266 supermarket products, potentially causing financial detriment to consumers. The core issues of this potential class action include:
Deceptive pricing practices: Woolworths is accused of promoting products with “Prices Dropped” and similar labelling in a manner than may have misled consumers about actual discounts offered.
Violation of Australian Consumer Law: The lawsuit alleges that Woolworths engaged in conduct that breaches the Australian Consumer Law by making false or misleading representations about product pricing.
Economic harm to consumers: There are claims that customers may have experienced financial loss by paying inflated prices for products they believed were discounted.
Misrepresentative of savings: Woolworths is accused of not providing genuine price reductions despite advertising products as being on special offer.
The issue
The class action focuses on Woolworths’ use of “Prices Dropped” and similar labelling, alleging that these promotional tactics may have misled consumers about the actual discounts offered.
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 Tim Tams biscuits
Dolmio sauces
Doritos salsa
Energizer batteries
Friskies cat food
Kellogg’s cereal
President butter
Listerine mouthwash
Moccona coffee capsules
Mother energy drinks
Mt Chen’s noodles
Nicorette patches
Ocean blue smoked salmon
Oreo cookies
Palmolive dishwashing liquid
Raid insect spray
Sprite soft drink
Stayfree pads
Twisties
Uncle Toby’s muesli bars
Vicks VapoDrops
NB: This is not an exhaustive list, and additional products may be included as the investigation progresses.
Economic impact
Customers might have paid inflated prices for products they believed were discounted, potentially resulting in financial losses.Â
What’s next?
GMP Law will proceed with its investigation, accumulating evidence and preparing for potential legal action against Woolworths. The firm will also closely follow the ACCC’s Supermarkets Inquiry. The ACCC is scheduled to deliver its 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 Woolworths in Australia, in-store or online, between September 2021 and May 2023
- Purchased products marked as “Priced Dropped”.
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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