Yesterday the Australian Competition and Consumer Commission (ACCC) announced it is taking legal action against Woolworths and Coles for allegedly misleading shoppers over the price of hundreds of products.
The ACCC alleges the misleading conduct took place over 20 months as part of the Woolworths “Prices Dropped” and the Coles “Down, Down” promotional campaigns.
Monash experts are available to comment on how this will impact the supermarket landscape and consumer behaviour.
Dr Tamara Wilkinson, Monash Law School
Contact: +61 3 9905 2143 or tamara.wilkinson@monash.edu
The following can be attributed to Dr Wilkinson:
“The timing of the ACCC's actions against Australia's two largest supermarkets is particularly significant given the cost of living pressures that have been impacting Australian households in recent years.
“By briefly raising prices and then offering 'discounted' prices that were higher than the original item prices, as is alleged by the ACCC, Woolworths and Coles may be found to have prioritised their bottom lines over complying with their legal obligations not to mislead or deceive consumers.
“The financial penalties for engaging in misleading or deceptive conduct in Australia can be significant, and given that the ACCC has alleged a large number of contraventions, this litigation could have serious financial consequences for Woolworths and Coles if it is successful.
“It is also likely to send a powerful signal to the market that this kind of conduct – raising and then 'discounting' prices – is not acceptable.”
Associate Professor Fiona Newton, Department of Marketing, Monash Business School
Contact: +61 3 9903 4840 or media@monash.edu
Read more of Associate Professor Newton’s commentary at Monash Lens
The following can be attributed to Associate Professor Newton:
“These alleged accusations are likely to further erode consumer trust in major supermarkets. However, this may not lead to significant changes in shopping habits due to factors like convenience, product range and ingrained routines.
“Shoppers on tight budgets will likely continue prioritising price, despite feeling frustrated or distrustful, as they may perceive limited alternatives.
“On the other hand, those with more discretionary income might explore independent supermarkets as a way to express their dissatisfaction.”
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