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Woolworths Defends 'Prices Dropped' Discounts in ACCC Court Fight Over Alleged Fake Savings

The case will define what counts as a 'reasonable' price-hold period for discounts, a ruling that could set penalties.

Overview

  • The ACCC says Woolworths misled shoppers by briefly lifting prices and then marketing reductions that still sat above the old shelf price.
  • In Federal Court, chief commercial officer Paul Harker testified that Woolworths cut its minimum price-hold for promoted items from eight to 12 weeks to three to six weeks as inflation rose.
  • Justice Michael O'Bryan said the outcome hinges on what a reasonable establishment period is before a later discount can be called genuine.
  • Regulators allege hundreds of products were affected between late 2021 and mid‑2023, and both sides agreed to test a basket of 12 items in court.
  • Parallel to this case, Coles has already finished its trial and is waiting for judgment, while class action firms report tens of thousands of shopper sign‑ups and estimate possible refunds from about $200 to as high as $5,000 per household if liability is found.