Class action filed against Coles, Woolies

A class action law firm has filed its lawsuit against Coles and Woolworths over allegedly dodgy sales prices.

The Sydney-based firm GMP Law lodged the lawsuit in the Federal Court on Thursday, and says consumers who join could get refunds ranging from $200 to $1300.

“We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide,” GMP Law chairman Gerard Malouf said.

The case stems from the national consumer watchdog suing Coles and Woolworths separately.

However, Mr Malouf says consumers joining his firm’s case “could be eligible for a refund ranging between $200 and $1300+, depending on their shopping habits and purchases at these retailers”.

“GMP Law is committed to holding these retailers accountable and will be seeking refunds for affected consumers.

“The proposed legal action aims to recover the price differential between the alleged illusory discounted pricing and the original, undiscounted price.”

The firm said consumers who join would not be charged legal fees unless the case was successful.

A Coles spokeswoman told NewsWire Coles would be defending the ACCC case, and the company had not been formally notified of the GMP case. Woolworths declined to comment on Thursday.

GMP Law and another class action firm – Carter Capner Law – began compiling evidence on Coles and Woolworths in September when the Australian Competition and Consumer Commission announced it was suing the two major supermarkets.

The ACCC alleged both major supermarkets temporarily hiked prices by at least 15 per cent before each slapping more than 200 products with promotional discount stickers at prices higher than before the hike.

At the time Coles said it would defend the case, Woolworths said it would “carefully review the claims”.

Approached on Thursday about the latest court action, the Coles spokesman pointed NewsWire to comments the Coles Group chairman made at the company annual general meeting on Tuesday.

Chairman James Graham told shareholders in the past year Coles participated in nine federal government, state government and ACCC reviews of different aspects of the supermarket industry.

“In all cases we have provided information to assist those undertaking the review,” Mr Graham said.

The period of time the ACCC is suing over relates to a period of significantly high inflation and rising supplier costs for Coles, the company says.

From March 2019 to June 2024, a basket of groceries in Australia went up 24 per cent, the ACCC found. But that hike was eclipsed in the UK, New Zealand, the US and Canada, where the average OECD grocery inflation hit 35 per cent.

But the ACCC, and now two law firms, are targeting the behaviour of both supermarkets for more than a year up to May 2023.

The other class action firm compiling a case – Carter Capner Law – announced on Wednesday it was looking for “class representatives” from each state to join the lawsuit and attach their name to the court cases, to be the lead applicant and attend court hearings.