Coles and Woolworths promised discounts for years. Now the ACCC alleges they 'misled' customers on more than 500 products   



23 September 2024
ABC News.

Supermarket giants Woolworths and Coles have been accused of using their "Prices Dropped" and "Down Down" promotions to mislead Australian shoppers.   

The two companies now face separate legal action in Federal Court by the Australian Competition and Consumer Commission (ACCC).

The ACCC announced it was launching legal action on Monday morning, with chairperson Gina Cass-Gottlieb saying the organisation aims to seek "high penalties" in court. 

Here's what we know about the allegations.

Supermarket prices increased 'by at least 15 per cent'
Both supermarkets allegedly offered certain products at their regular price "for at least 180 days", according to the ACCC.

The price of each product was then allegedly increased "by at least 15 per cent for a relatively short period of time".

ACCC takes legal action against Woolworths and Coles
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The Australian Competition and Consumer Commission launches legal action against Woolworths and Coles, alleging the supermarket giants breached consumer law by misleading consumers through discount pricing claims on hundreds of products.

"[Woolworths and Coles] subsequently placed it onto their 'Prices Dropped' or 'Down Down' program," the ACCC said in its statement.

"The ACCC alleged the display of the Prices Dropped and Down Down tickets was misleading, as the price of the products was in fact higher or the same as the regular price [offered previously]."

Woolworths' Prices Dropped campaign promised to help customers "spend less on their everyday essentials".

A release published by the supermarket in August offered price reductions of up to 23 per cent on more than 450 products in-store and online.

Coles' long-running Down Down marketing campaign was first launched in 2010, offering similar price discounts on common items.

Ms Cass-Gottlieb said the years of marketing campaigns meant Australians associated both promotions with cheaper prices.

Those cheaper prices, the ACCC alleges, "were, in fact, illusory".




Last month the supermarket giants were accused of price gouging following their latest profit results.

"We also allege that in many cases both Woolworths and Coles had already planned to later place the products on a 'Prices Dropped' or 'Down Down' promotion before the price spike," Ms Cass-Gottlieb said.

"[They] implemented the temporary price spike for the purpose of establishing a higher 'was' price."

Woolworths' Oreos family pack allegedly spiked in price
Woolworths has been accused of increasing the prices temporarily of at least 266 different products before they were put on the Prices Dropped campaign.

In the ACCC's legal statement, the Prices Dropped program aimed to lower the standard prices over a longer time period.

Products were typically on the program for at least 12 weeks, but according to the ACCC many of the affected products were on it for "six months or longer".


Woolworths is accused of offering "misleading" prices on more than 260 items.

In 265 cases between September 2021 and May 2023, the price of a product was allegedly higher than its previous regular price before it was discounted.

"There was a price spike period of 45 days or less prior to the product being placed on the Prices Dropped promotion during which the price … was at least 15 per cent higher than its regular price," the ACCC said.

Affected products included Tim Tams, batteries, pet food, butter, nicotine patches, muesli bars, cleaning supplies and menstrual products.

A family pack of Oreos was allegedly sold at a "pre-existing Prices Dropped price of $3.50 from January 1, 2021 to November 27, 2022, "at least 696 days" according to the ACCC.

A chart showing the price change of a family pack of Oreos
The ACCC tracked the alleged price change of a family pack of Oreos over the affected period.  (ACCC/ABC News)

"On 28 November 2022, the price of the product was increased to $5.00 for a period of 22 days," the ACCC claimed.

"On 20 December 2022, the product was then placed back on a Prices Dropped promotion with the tickets [showing a] price of $4.50 and a 'was' price of $5.00.

"Woolworths had decided on or around 18 November 2022 to take the product off Prices Dropped, increase the price, and then put the product back on to Prices Dropped three weeks later."

Woolworths has said it will carefully review the claims and continue to engage with the ACCC on the issue.

The supermarket said in a statement to the ASX it was still "committed to offering many ways for customers to save at the checkout".