SYDNEY, May 15, 2026, 08:07 AEST
- Woolworths hasn’t received a decision yet on its own discount-pricing case, after Coles lost in the Federal Court on a similar issue.
- Woolworths misled customers on 266 items in its “Prices Dropped” program, the ACCC alleges.
- Investors now eye whether the ruling will force stricter supermarket promotion rules across Australia.
Friday brings Woolworths Group Ltd’s discount-pricing case back into the spotlight, following a Federal Court ruling that found rival Coles had misled customers with its “Down Down” campaign.
Timing is key here. The judge is still weighing a separate case involving Woolworths, and the Australian Competition and Consumer Commission declined to comment while that’s pending. In Coles’ situation, the regulator said the case covered 245 products, and the court identified misleading claims on 13 out of 14 sample “Down Down” price tickets reviewed in the liability hearing. ACCC
Woolworths slipped 1.9% after the Coles court decision. Coles dropped even further, down 2.7%, according to Reuters. “The court ruling is the clear trigger for today’s weakness, but the market is looking beyond the legal headline,” said Hebe Chen, analyst at Vantage Markets. In her view, investors are weighing “the risk that Coles’ discounting playbook becomes less flexible.” Reuters
The ACCC is taking aim at Woolworths over whether customers believed they were actually getting lower prices. In its 2024 lawsuit, the regulator accused Woolworths of making false or misleading claims on 266 items between September 2021 and May 2023. The issue: after bumping prices for a brief stretch, Woolworths launched “Prices Dropped” tags—sometimes at the same or even higher prices than shoppers had previously paid. ACCC
That’s the legal risk — but there’s a commercial angle, too. Discounting plays a key role for Australian supermarkets trying to hang onto market share, especially as households feel the squeeze and competitors keep shelf prices neck and neck.
But what Coles faced in court doesn’t automatically apply to Woolworths. Woolworths’ lawyers maintain shoppers weren’t misled—they say the higher prices actually stuck around long enough to qualify as “regular,” and supplier cost hikes made past prices outdated anyway. Robert Yezerski SC told the court the Woolworths situation was “a million miles away” from those prior “was/now” advertising cases that ended up being labelled misleading. ABC News
Pressure on the sector is already high, with Woolworths and Coles holding sway over Australia’s grocery shelves. The ACCC wants sharper transparency around prices, promotions, and those loyalty programs; it’s pushed for ALDI, Coles, and Woolworths to make their pricing public, while Coles and Woolworths specifically would have to share real-time price data with outside firms.
Woolworths isn’t losing steam on sales. As of April 30, the company reported a 4.5% lift in group third-quarter sales to A$18.1 billion. Australian Food sales advanced 5.9%, while group e-commerce sales jumped 20.2%. Management still sees Australian Food EBIT — that’s earnings before interest and tax — growing at a mid- to high-single-digit pace in fiscal 2026, but not hitting the very top of that bracket anymore.
Woolworths CEO Amanda Bardwell pointed to “early signs” that unrest in the Middle East is starting to impact both customers and staff, who are already grappling with cost-of-living strain. Bardwell added that the company remains focused on “making every dollar count” and continues to invest in lower prices and convenience.
Woolworths keeps leaning into convenience. The company on May 13 rolled out 380 new or revamped easy meal options, pointing to internal figures showing almost half of Aussie home cooks stick to five or fewer go-to recipes. A modest tweak to the product lineup, sure, but it’s all about keeping customers filling their baskets, even as wallets get squeezed.
Woolworths faces more than just a potential fine here. If the court rules against them, the company could be hit with stricter requirements over how long it needs to keep products at a higher price before slapping on a discount label—cutting into one of supermarkets’ key promotional levers.
Consumer-law experts are keeping an eye on the bigger picture. Jeannie Paterson, a professor at the University of Melbourne, told the Guardian the Woolworths case had laid bare “the cynicism of marketing,” adding that plenty of shoppers will likely stay “very suspicious of marketing campaigns.” The Guardian
At this point, Woolworths holds something Coles has lost: uncertainty. With the court yet to deliver a decision, investors are left pricing in risk instead of a verdict.
