A prominent class action lawyer says allegations of misleading sales levelled against Woolworths and Coles “support a very good class action claim”. The consumer watchdog this week announced it was separately suing Coles and Woolworths for allegedly deceiving customers with hundreds of “sale” prices for more than a year up to May 2023. Coles says it will defend the case, Woolworths says it will “carefully review the claims”.
Changes to the Australian Consumer Law now legislate maximum penalties of $50m, or three times the value of the “reasonably attributable” benefit obtained, for each time a customer was deceived. A government source has cautioned against even multiplying the 266 Woolworths products in question – or Coles’ 245 products – by $50m to speculate on what damages figure the Australian Competition and Consumer Commission could pursue should the Federal Court rule in its favour. On Monday, ACCC chair Gina Cass-Gottlieb said the penalties her commission would pursue had to be enough to deter other corporations and “not a cost of doing business for such major companies”.
Ms Cass-Gottlieb played a very straight bat when asked about the potential for a civil class action being launched by customers, saying that was not the commission’s role. “We are seeking redress in the case through a community service order (for Woolworths and Coles) to give to the most needy members of our community,” she said. “There is always a potential of class.