Sydney, May 16, 2026, 08:09 AEST
- Woolworths is still waiting for a decision in its own ACCC pricing case, after the Federal Court said Coles misled customers with some “Down Down” discount advertisements. ACCC
- Woolworths’ “Prices Dropped” messaging appeared on 266 items from September 2021 to May 2023, the ACCC said in its filing. ACCC
- Woolworths shares traded at A$32.98, up 0.44%, according to the company’s investor page at 4:27 p.m. AEST on May 15.
Woolworths Group Ltd is bracing for tougher legal and investor scrutiny after the Federal Court ruled against Coles, raising questions over the country’s supermarket discounting strategy. The decision in Woolworths’ case has yet to be handed down.
Woolworths faces similar legal heat over its “Prices Dropped” promo, which it uses to flag lower shelf prices for shoppers. The ruling is key because it could decide more than just a fine—it could shape how much Woolworths can use price tags to pitch value as family budgets stay under pressure.
Federal Court said Coles gave false or misleading info on 13 out of 14 “Down Down” tickets, according to the Australian Competition and Consumer Commission. Penalties and other orders for Coles will be decided later, the ACCC said. ACCC
ACCC alleges Woolworths cycled 266 products through quick price jumps of at least 15% and then brought them back to shelves as “Prices Dropped” items, but often at prices above or equal to the original regular price. The regulator said Australian Consumer Law bans false or misleading price promotions. It also pointed out it doesn’t set or control supermarket prices. ACCC
Woolworths shares fell 1.9%, according to Reuters, after the court decision on Coles, with Coles dropping 2.7%. Hebe Chen, analyst at Vantage Markets, called the ruling “the clear trigger” for the share move, but said investors are now watching if Coles’ “discounting playbook becomes less flexible.” Reuters
Coles and Woolworths account for close to two-thirds of Australia’s grocery sales, Reuters said. So changes to discount rules wouldn’t just hit one chain, but the whole sector. Coles is Woolworths’ main listed rival. Aldi, which is private, competes on price but isn’t named as a defendant in the actions.
Woolworths is under pressure as it works to get sales growing again. In its April 30 trading update, group sales for the third quarter were up 4.5% to A$18.1 billion. Sales at Australian Food climbed 5.9%. CEO Amanda Bardwell pointed to spending on value, fresh food and convenience as reasons for “improved sales momentum in Australian Food.”
Woolworths has gone big on price certainty. The retailer said in late April it would lock in shelf prices on 300 of its own-brand or exclusive basics for three months starting May 1, including eggs, bread, chicken, pasta, and nappies. Bardwell said shoppers were anxious about what global instability could mean for their budgets.
Former ACCC chair Rod Sims told the Guardian the decision puts retailers on notice. “If you’re suggesting there’s a discount, then it really better be a discount,” Sims said. Former watchdog chair Allan Fels told the paper it will likely force supermarket companies to tighten up how they run discounts. The Guardian
The risk isn’t one-sided. The Woolworths case is still waiting on a Federal Court ruling, and the Coles decision doesn’t mean Woolworths will get the same result. The ACCC confirmed judgment in the Woolworths matter is still reserved. Outcomes, court orders, and penalties might not match. Coles said it is looking over the judgment.
Woolworths faces a legal step before anything operational changes. If Woolworths loses, it could face fines, more limits on its “was/is” pricing, and extra attention on wording used in shelf tickets. A win or a smaller ruling would cut back some of that pressure. The Coles case has already shifted how supermarkets talk about discounts.
