Woolworths executive Paul Harker faces Federal Court Sydney cross-examination as ACCC alleges fake discounts
A senior executive at a supermarket giant denies the retail chain misled customers with fake discounts for a number of items.
A top executive from Woolworths will spend a second day defending allegations of fake discounts by the consumer watchdog.
Lawyers for the Australian Competition and Consumer Commission will continue their cross-examination of Woolies chief commercial officer Paul Harker in the Federal Court in Sydney on Thursday.
In a joint consumer watchdog action launched against Woolworths and Coles, the commission alleges the supermarket giants misled consumers by briefly raising prices before reducing them to above the original shelf price in marketing campaigns to disguise hikes as discounts.
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By continuing you agree to our Terms and Privacy Policy.Mr Harker on Wednesday revealed Woolworths’ resting period - the minimum duration a product had to stay off its “Prices Dropped” promotion once removed - was reduced from six months to between three and six weeks.
The established price period - the shelf time required to derive a regular price - dropped from eight to 12 weeks to between three and six weeks.
The policy shifts came in response to higher supplier prices following rising inflation and supply chain pressures sparked by the COVID-19 pandemic, the executive said.
“As inflation continued to grow and grow and grow, we revised these policies,” Mr Harker told the court.
The guidance around pricing supplied by the regulator requires prices to exist for a reasonable time, and drive a reasonable number of sales to be considered legitimate.
The case will likely hinge on how long the temporarily higher prices were held and whether this could be considered an established price.
ACCC lawyers on Monday accused Woolworths of employing “subtle magic” in its pricing campaign to disguise price hikes with short-term increases before reducing them to above the original shelf prices.
Coles made its case to the court over 10 sessions in February, but the final judgment will be withheld until Woolworths has presented its evidence.
Thursday’s session will be the third of a scheduled eight for the hearing.
Australia’s supermarket sector - one of the most profitable in the world - has faced heavy scrutiny and inquiries amid rising cost pressures and supply chain disruptions since 2020.
