Class action launched against Coles and Woolies: ‘The average Australian consumer could be eligible for a refund’
A class action suit has been filed against Coles and Woolworths, with the law firm predicting a range of payouts to Australians from $200 to over $1,300.
Gerard Malouf & Partners has lodged the class action lawsuits against Australia’s largest supermarket chains, in response to recent findings by the ACCC.
The suits “aim to secure financial redress for Australians who may have been misled by the supposed discounts”.
GMP Law’s class action is unique from the ACCC proceedings, which seek penalties but offer no direct consumer refunds.
“This action focuses solely on winning back the difference between the advertised ‘discounted’ prices and the real prices for hundreds of commonly purchased products at Coles between February 2022 and May 2023, and at Woolworths between September 2021 and May 2023,” the law firm explained in a statement given to Mumbrella on Thursday.
Chairman Gerard Malouf commented: “We estimate that the average Australian consumer could be eligible for a refund ranging between $200 and $1,300+, depending on their shopping habits and purchases at these retailers.
“We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide.”
GMP Law will be seeking refunds for affected consumers.
Speaking to Mumbrella late last month, Malouf explained the lawsuit was “an application to the Federal Court for damages on behalf of up to 13.5 million Woolworths and Coles loyalty card customers”.
He said: “Since the commencement of our investigation, GMP Law has had tens of thousands of group members register their interests with us in our proposed class actions. This large influx of registrations reflects a clear indication of harm across a broad spectrum of Coles and Woolworths customers.
“Our investigations are different to the ACCC proceedings. Our claim will be for the losses occasioned by customers seeking reimbursement for the allegedly illusory discounts. The ACCC proceedings would likely reflect in a deterrent penalty to discourage these major supermarkets from acting in this way again but would not seek a refund for customers
“Woolworths and Coles are denying liability in the ACCC action for allegedly misleading pricing. They argue that the price reductions, which appeared to be deceptive discounts, were a result of initial price increases driven by suppliers facing higher production costs.
“The subsequent price drops, they claim, were the outcome of complex commercial negotiations with suppliers, which raised the cost of goods and included promotional spending by suppliers to market their products. In our view, and likely the ACCC’s, these defences are unconvincing and lack commercial logic.”
Read our interview with Malouf for more information about the class action.
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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I’ll put my hand up! And how exactly are they going to work out from the tens of thousands of shoppers over the years who will get a payment???
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If you use any of their rewards programs, they know exactly what you have bought, if they can use it for emails they can use it to pay customers out too!
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What about people without loyalty cards
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How can I join in the law suit please.
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I think I will go for the claim of $1,300+ amount please.
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Can you make a claim at both supermarkets or only one as I use both Coles and Woolworths being from Tasmania we don’t have ALDI stores which I would use if we had them
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I’ve switched to Aldi. Much cheaper and friendly and helpful staff.
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I feel woolies are just ripping off their loyal customers
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