Supermarket giant Woolworths is set to begin its Federal Court case, as the retailer seeks to defend itself from the ACCC’s allegations about its long-running ‘Prices Dropped’ promotion.

Starting from April 21, the case follows the landmark Coles case in February, in which it defended its ‘Down Down’ promotion.

“Woolworths Group Limited temporarily increased the prices of at least 266 different products before placing them on ‘Prices Dropped’ promotions at prices which were higher than, or the same as, the price at which each product had ordinarily been offered for sale prior to the temporary price spike,” the ACCC alleges. 

The commission’s chair – Gina Cass-Gottlieb – said this amounts to a breach of Australian Consumer Law. Woolworths denies the allegations.

The Federal Court will examine a 20-month period from September 2021 to May 2023. The high-profile case could hinge on one product: Oreos, one of the ACCC’s key pieces of evidence.

For at least 696 days, the ACCC said that the price of the Oreo Family Pack Original (370g) was $3.50, before being increased to $5 for 22 days. The ACCC says it was then included in the ‘Prices Dropped’ promotion at $4.50, with a former price of $5.

“Separate proceedings are brought against Woolworths and Coles, and the ACCC is not making any allegation of any collusion or anti-competitive conduct by Woolworths and Coles as part of these proceedings,” the commission said in 2024.

Cass-Gottlieb added that the commission is seeking a “significant penalty”.