Woolworths Group AGM: Chairman rejects fake discount allegations

Woolworths Group has railed against allegations it deceived customers with false discounts on specially-marked products.

Woolworths Group has rejected allegations it misled customers by inflating prices before discounting and advertising products as falsely reduced.

The ACCC launched legal action against Woolworths and its competitor Coles in September over allegations both companies misled consumers with their pricing and discounts on hundreds of common products between February 2022 and May 2023.

Coles and Woolworths allegedly hiked prices by at least 15 per cent for brief periods before placing promotional discounts with higher prices than before the hike.

The ACCC alleges Woolworths did this for 266 products in its “Prices Dropped” promotion over a period of 20 months.

Woolworths is accused of faking discounts. Picture: NewsWire/ Gaye Gerard

During the Woolworths Group annual general meeting on Thursday, chairman Scott Perkins rejected the ACCC allegations.

“Woolworths Group is not perfect,” Mr Perkins said.

“I’m sure we will learn something from these inquiries, but we were disappointed with the ACCC to commence proceedings while we disagree with their assessment that the price drop program was deceiving.

“We will work with them.”

Mr Perkins said the company prioritised customer satisfaction at every level.

“But we remain firmly supportive of our teams and their conduct and the customer-first culture that so strongly underpins the Woolworths Group of today,” he said.

“Public opinion on these matters can shift quickly.

“Our approach is to calmly and methodically address these issues, present the evidence and pursue all options to give the best possible opportunity for reasoned outcomes to prevail.”

Woolworths Group chief executive Amanda Bardwell replaced Brad Banducci in September. Picture: NewsWire / Nikki Short

Mr Perkins said the company worked to offer “great value” for its customers.

“We track our price competitiveness competitively,” he said.

“We know our customers do and … if we don’t offer great value along with quality, range and convenience (they will go elsewhere).

“We will provide further submissions and appear at the public hearings in coming months.”

Woolworths Group chief executive Amanda Bardwell said the supermarket chain would continue to work with the ACCC as the inquiry continued.

“We’ve appreciated the opportunity (to show) how we are balancing the needs of all of our stakeholders,” Ms Bardwell said.

“We will continue to work with the ACCC and all others.”