If you’ve ever felt a little sceptical about those big, bold ‘Down Down’ or ‘Prices Dropped’ signs at Coles and Woolworths, you’re not alone.
In fact, Australia’s two supermarket giants are now facing off with the competition watchdog in a legal stoush that could finally answer the question: are we really getting a bargain, or just being taken for a ride?
The heart of the matter: What’s a ‘fake discount’?
The Australian Competition and Consumer Commission (ACCC) has taken Coles and Woolworths to court, alleging that both supermarkets have been playing a bit fast and loose with their discounting tactics.
According to the ACCC, the supermarkets would quietly bump up the price of certain products for a short period, only to then ‘drop’ the price back down and advertise it as a special deal.
The catch? The so-called ‘discounted’ price was often the same as, or even higher than, the regular price before the bump.
The products in question cover a wide range: dairy, pet food, personal care, coffee, medicine, lollies, cereal, and household cleaning products.
So, if you’ve ever felt like your weekly shop isn’t quite as cheap as the signs suggest, you might be onto something.
The courtroom drama: How many products should be scrutinised?
This week, the Federal Court in Melbourne became the stage for a heated debate—not about whether the supermarkets are guilty, but about how many products should be put under the microscope.
The ACCC wants to use a sample of products as evidence, but Coles and Woolworths are pushing back on how many should be included.
Coles initially agreed to 12 products (six chosen by the ACCC, three ‘class’ products, and three of their own choosing). But just before the hearing, the ACCC wanted to add four more.
Coles’ legal team argued that this would mean more witnesses and more complexity, questioning whether the extra products would really add anything new.
Woolworths, meanwhile, had suggested just six products, but the ACCC at one point wanted to look at 20 before settling on 12.
The judge, Justice Michael O’Bryan, urged everyone to find a sensible middle ground, suggesting that keeping the number under 15 would make for a more efficient trial.
Why does this matter to you?
Coles and Woolworths control about two-thirds of Australia’s supermarket market share.
That means the outcome of this case could have a big impact on how discounts are advertised—and how much you pay at the checkout.
The ACCC is seeking significant penalties for what it says are breaches of consumer law that went on for 15 months. Both supermarkets deny any wrongdoing, insisting the cases are ‘misconceived’.
But for everyday shoppers, the case raises important questions about trust and transparency. Are the discounts we see in-store and online genuine, or are they just clever marketing?
As the legal proceedings unfold, the outcome of this case could shape how promotional pricing is perceived and regulated in the future.
While the court works toward a resolution, it’s worth considering how such practices might affect everyday shopping experiences.
What are your thoughts on promotional pricing? Have you ever noticed a ‘special’ that didn’t seem so special? Do you trust supermarket discounts, or do you think it’s all smoke and mirrors?
We’d love to hear your stories and tips for spotting a real bargain. Share your thoughts in the comments below—let’s help each other shop smarter!
Also read: Changes ahead for fresh produce discounts at Coles
