Coles and Woolworths will separately face a joint class action next year over allegations they misled shoppers about their discount pricing claims.
The Federal Court has confirmed that the class action proceedings being run by law firm Gerard Malouf & Partners on behalf of shoppers will be run alongside the Australian Competition & Consumer Commission’s (ACCC) proceedings against the supermarket giants.
To reduce legal costs and ensure maximum protection for group members, the class actions have been paused until the ACCC liability judgment is handed down.
READ MORE: Coles, Woolies made ‘millions’ from ‘illusory’ discounts: ACCC
The court will first hear the consumer watchdog’s case on whether Coles and Woolworths made false and misleading claims in their respective discount price campaigns.
If liability is established, the findings will also apply to the class actions, which will then move directly to the question of compensation for group members.
“This is an important milestone for group members,” said Gerard Malouf, founder and chairman at GMP Law.
“The court’s decision to align our class action with the ACCC proceedings streamlines the path to justice, reduces costs, and strengthens the prospects of securing fair compensation if liability is established.”
The next case management hearing is set for next Wednesday in Melbourne.
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