Woolworths engaged in ‘marketing magic’ to trick customers, consumer watchdog tells court
Summary
The Australian Competition and Consumer Commission (ACCC) is suing Woolworths for allegedly using misleading price promotions that made customers think they were getting real discounts. The ACCC claims Woolworths raised prices temporarily before marking items as "Prices Dropped" discounts, which may have misled shoppers about actual savings.Key Facts
- The ACCC filed a court case against Woolworths about its “Prices Dropped” promotion.
- Between September 2021 and May 2023, Woolworths raised prices on at least 266 products before offering them at a “discount.”
- The items were sold at the original price for 180 days or more, then the price went up by at least 15% for less than 45 days before the promotion.
- The third price shown during the promotion was often higher than the long-term original price before the temporary increase.
- The ACCC calls this practice “marketing magic,” suggesting it tricks customers into thinking they got a real deal.
- In one example, a family pack of Oreos was raised from $3.50 to $5.00 before being “discounted” to $4.50, which was still more than the original price.
- Woolworths often agreed with suppliers on the discounted price while also planning price increases beforehand.
- The case is similar to a previous one against Coles for misleading price promotions.
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