Supermarket giants Coles and Woolworths to fight .
Lawyers for the two supermarkets appeared in the Federal Court on Wednesday after the Australian Competition and Consumer Commission (ACCC) launched separate legal proceedings in September.
The watchdog claims the companies violated consumer law by misleading shoppers on hundreds of popular supermarket items with their “Down Down” and “Prices Dropped” campaigns.
It is alleged that the two supermarkets used similar schemes to raise the prices of hundreds of products before lowering them as part of their respective campaigns.
Products – including dairy, pet food and personal care – sold for less than the inflated prices, but still above the regular price in effect before the price spike.
Cameron Moore, representing Woolworths, told the court the company had not triggered temporary price increases.
Both supermarkets say they followed requests from suppliers, who pushed for an increase due to their rising costs.
“The suggestion is that Woolworths initiated temporary price increases and that is not factually accurate,” Moore said.
“We say that, as a matter of fact, the ACCC’s case is incorrect.”
John Sheahan, representing Coles, said the case was not as simple as the ACCC claims and any outcome could have significant implications for the entire industry.
Coles and Woolworths have until November 29 to file a written response to the ACCC’s allegations.
The parties will then return to the Federal Court in December for another case management hearing.
Judge Michael O’Bryan did not set an exact date for the hearing.
The legal action follows a and calls for an overhaul of the sector to ensure people can afford everyday items during a cost of living crisis.
