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Federal Court Reserves Ruling in ACCC Case Over Woolworths Prices Dropped Discounts

The decision could reset discount advertising across supermarkets with heavy penalties at stake.

Overview

  • The Woolworths hearing has closed with Justice Michael O'Bryan reserving judgment, alongside his already reserved ruling in the parallel Coles case.
  • The judge signaled he will test whether the higher “was” prices were genuine market prices offered for a reasonable period rather than rely on Woolworths’ internal rules.
  • The ACCC alleges the chain used brief price hikes followed by Prices Dropped tickets to create illusory savings on 266 items, using regular white shelf tags that suggested stability.
  • Woolworths argues the raised prices reflected supplier requests during inflation, were competitive, and were validated by high sales volumes at those levels.
  • An adverse ruling could bring fines of about $50 million per company, trigger class actions, and force new guardrails on how retailers present discounts to shoppers.