The discounts at Woolworths that are being challenged in court | The Business | ABC NEWS

First it was Coles, now it rival, Woolworths is being accused by the competition watchdog of misleading customers over discounts on hundreds of items. The ACCC claims Woolworths broke its internal policies by placing 266 products on the 'Prices Dropped' promotion. It said the price establishment guideline is the length of time a product should remain on a price before being reduced. The case is focusing on 12 items, including an Oreo Family Pack that was sold at $3.50 for 696 days until late November 2022. It then spiked to $5.00 for 22 days before Woolworths put it on a "Prices Dropped" price of $4.50 - 29 per cent higher than the previous price. The court heard regular prices were on white labels, yellow tags indicated temporary specials. The ACCC's lead barrister Michael Hodge argued there was something special about the red-and-white design, which also displayed a WAS price. He said "the subtle magic of the 'Prices Dropped' message that draws the consumer in is to say the new, stable price is lower." But the judge disputed whether customers would overthink these labels. Defending the case, Woolworths counsel Robert Yezerski rejected the ACCC claims, saying prices were geniune, discounts weren't illusory and cost increases were driven by suppliers during a period of soaring inflation. At that time, he said it was unreasonable to assume customers would expect stable prices.
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Read more here: https://www.abc.net.au/news/2026-04-21/woolworths-accc-case-day-one-federal-court/106561700

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