"Misconceived": Coles and Woolies fight allegations of price gouging
Coles and Woolworths are set to fight the allegations that they have been inflating prices, as they begin their cases against the Australian Competition and Consumer Commission (ACCC).
The lawyers for both supermarket giants appeared in the Federal Court on Wednesday after the ACCC claims the companies violated consumer law by intentionally misleading shoppers.
The ACCC claim both Coles and Woolworths inflated the prices on hundred of items before placing them on sale with their "Down Down" and "Prices Dropped" campaigns.
The products - including dairy, pet food and personal care - sold for less than the inflated prices, but still more than the regular price that applied before the price spike.
Cameron Moore SC, representing Woolworths, told the court the supermarket had not initiated the temporary spikes in prices and would be fighting the ACCC's allegations.
"The suggestion is that Woolworths initiated temporary price spikes and that's not correct factually," Moore said. "We say factually, the ACCC's case is misconceived."
Both Coles and Woolworths said their increase in prices came at the demand of suppliers, who pushed for the increase due to their rising costs.
John Sheahan KC, representing Coles, said the case was not as simple as alleged by the ACCC and any outcome could have significant implications for the whole industry.
Coles and Woolworths have until November 29th to file a written response to the ACCC's allegations, before both parties return to the Federal Court in December for another case management hearing.
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