ACCC Claims Woolworths Used Temporary Price Hikes to Fake Discounts on 266 Items

Context: The Australian Competition and Consumer Commission opened its landmark trial against Woolworths in Sydney’s federal court on Tuesday, following a similar case against Coles. The regulator says both supermarkets used “illusory” discounts through their Down Down and Prices Dropped programs to breach consumer law. Opening statements were heard from both sides, with Justice Michael O’Bryan questioning the relevance of how long items stayed at the inflated price.

Key Facts: Woolworths allegedly increased the price of at least 266 goods for 45 days or less after selling them at a stable level for 180 days or more, then applied a “was/is” ticket showing a higher original price. A family pack of Oreos exemplified the pattern: it sold for $3.50 for roughly two years, jumped to $5 for 22 days, then appeared in Prices Dropped at $4.50, leaving buyers paying a dollar more than before the temporary spike. The ACCC argues the final “dropped” price often exceeded the true long‑term price, making the saving illusory. Woolworths halted the Prices Dropped promotion at the end of 2024.

What It Means: If the court finds the conduct misleading, Woolworths could face fines, mandatory corrective advertising, and changes to how it structures future promotions. The case may also prompt broader scrutiny of comparative pricing across retail. Watch for the judge’s ruling, any settlement talks, and whether regulators extend similar investigations to other chains or product categories.