Coles and Woolies to face court over accusations of fake discounts

Supermarket giants Coles and Woolworths are set to make their first court appearance since being accused of tricking customers with fake discounts.

Both supermarkets will face the Federal Court on Wednesday accused of violating consumer law by the Australian Competition and Consumer Commission which says they misled shoppers on hundreds of popular supermarket items with their "Down Down" and "Prices Dropped" campaigns.

The alleged fake discounts included dairy, pet food, personal care, coffee, medicine, lollies, cereal and household cleaning products.

READ MORE: How far Coles and Woolies' alleged dodgy discounts go

Woolworths and Coles are both being separately sued by the ACCC over alleged "illusory" discounts.

The ACCC began separate proceedings against Woolworths Group Ltd and Coles Supermarkets Australia Pty Ltd in September.

At the time ACCC chair Gina Cass-Gottlieb alleged both supermarkets used similar ploys to increase prices of hundreds of products before dropping them as part of their respective campaigns.

The products sold for less than the inflated prices, but still more than the regular price that applied before the price spike.

READ MORE: Coles, Woolies say high price of Tim Tams isn't their fault

The "Prices Dropped" and "Down Down" campaigns are the subjects of the proceedings.

The ACCC said, if successful, it would seek a significant penalty for the alleged breaches of consumer law.

Coles said it would defend the court proceedings, while Woolworths said its Prices Dropped program was introduced to give shoppers "great everyday value" on products.

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Coles and Woolies to face court over accusations of fake discounts
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