Did You Really Get a Discount on Your Tim Tams? The ACCC Doesn't Think So
Woolworths says its pricing is not misleading.
Did Woolworths trick shoppers into buying Tim Tams with fake discounts?
A court case is looking into this question.
The ACCC says Woolworths used fake discounts on many items.
This case is similar to one against Coles.
A former consumer watchdog boss thinks this case is very important.
The ACCC says Woolworths misled customers with fake discounts.
He thinks the Woolworths case will be very interesting.
The ACCC is taking strong action.
This is the second case about fake business discounts.
There may be more cases like this in the future.
The ACCC wants to make sure discounts are real.
If the ACCC loses, it will be a big challenge for them.
Woolworths is defending itself, saying price increases were due to suppliers.
If Woolworths wins, it will be good for their reputation.
But if Woolworths loses, it could face a big fine and damage to its reputation.
Consumers are happy the ACCC is taking action.
A Woolworths shopper wants to see if the ACCC can prove its case.
Many people are feeling the effects of high prices.
It's good to know someone is looking out for consumers.
Woolworths shopper Stella Kelly is feeling the pinch.
Stella lives with her partner and dog and is feeling the cost of living squeeze.
She and her partner have a dual income but are still struggling.
Another Woolies shopper, Carol, has cut back on groceries due to inflation.
Carol would be furious if the court finds Woolworths misled customers.
She limits what she buys because of the cost.
She would be furious if the court finds Woolworths and Coles misled customers.
It shouldn't be happening.
Woolworths 'diminished' consumers' ability to make informed choices.
The ACCC will look at the pricing of the Oreo Family Pack.
The ACCC says Woolworths planned price spikes before putting products on sale.
The Oreo Family Pack is one of many products the ACCC is looking at.
Woolworths prevented shoppers from making informed choices.
The Oreo Family Pack was sold at a regular price for a long time.
Then the price spiked before going on sale.
Shoppers were shown a ticket that said the price was lower.
But the ACCC says this was misleading.
The price was actually higher than the previous regular price.
Woolworths had planned the brief price spike.
Woolworths had decided to take the Oreos off sale before putting them back on.
Woolworths rejects this claim.
Woolworths says the first price was a pre-inflationary dropped price.
Woolworths says the previous regular price was $5, not $3.50.
Here's another example.
Lucky Dog Bones were sold at a low price for a long time.
Then the price increased before going back on sale.
The pricing for Stayfree Ultra thin pads is complicated.
This product was sold at a low price before the price increased.
Then it was put on sale at a price higher than the previous year.
The ACCC says Woolworths planned the price spikes.
Many shoppers wouldn't have understood that the price was higher.
Tim Tams, Fab, and Tiny Teddies will also be looked at.
Were shoppers misled?
Woolworths is the largest player in the grocery sector.
It has over 1,100 supermarkets and Metro stores.
Woolworths posted a $1.4 billion net profit last year.
Coles and Woolworths dominate the market.
The 'Prices Dropped' promotion has been around since 2015.
The promotion features a distinctive red-and-white shelf ticket.
Consumer law expert Jeannie Paterson has an opinion on the case.
She thinks a crucial factor will be whether a reasonable shopper was misled.
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The ACCC needs to show that the conduct was misleading.
But they don't need to show anyone was actually misled.
Woolworths denies any wrongdoing.
Woolworths says its 'Prices Dropped' prices were not fake.
The case against Coles is also important.
Woolworths says the information it gave shoppers was accurate.
Suppliers had requested price increases due to inflation.
The 'previous regular price' is no longer relevant.
Woolworths says it did not mislead or deceive customers.
Mr Fels doesn't think Woolworths' argument will succeed.
The case is about misleading the public about prices.
Woolworths says it maintained the 'Prices Dropped' program to reduce the impact of inflation on customers.
The company disagrees with the claims made.
These cases are a 'litmus test' of Australian consumer law.
The outcome could transform how prices are set.
Professor Paterson thinks it will be a 'litmus test' of how far Australian consumer law can go.
Many people think the pricing games supermarkets play may not pass the pub test.
Whether it's against the law is not clear.
If the ACCC loses, it will be a huge challenge for them.
But if the ACCC wins, it could result in big fines and a powerful message.
The ACCC's biggest consumer law fines are notable.
Source: ACCC
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