ACCC sues Woolworths over alleged fake 'Prices Dropped' discounts

Consensus Summary

The Australian Competition and Consumer Commission (ACCC) is suing Woolworths in federal court, alleging the supermarket misled customers by temporarily increasing prices on 266 products by at least 15% for up to 45 days before placing them on 'Prices Dropped' promotions at prices higher than or equal to their original long-term prices. The case, which began in April 2026, focuses on whether Woolworths violated its own internal guidelines and Australian consumer law by using 'was/is' comparative pricing to disguise planned price hikes. Key examples include Fab laundry powder, which jumped from $7 to $14 for just 19 days before being promoted as a $8 discount, and Oreo biscuits, which spiked from $3.50 to $5 for 22 days before being sold at $4.50 under 'Prices Dropped'. Woolworths defends its practices, arguing that supplier-driven cost increases justified the price changes and that the promotions were genuine discounts. Justice Michael O'Bryan, who also presided over a similar case against Coles, has questioned whether the ACCC's case is inherently misleading or whether the focus should be on the genuineness of the 'was' prices. The trial has exposed internal policy changes, including a reduction in the required price establishment period from 8–12 weeks to 3–6 weeks, and revealed that Woolworths often negotiated price increases with suppliers in advance of promotions. The outcome of the case could reshape retail pricing rules and impact consumer trust in supermarket promotions.