A shopper looks at grocery items at a Target store in Los Angeles, California August 18, 2009.
The legal firm claimed its class action against supermarket giants was different from ACCC as it is seeking refunds for the affected consumers.

Following a crackdown by the consumer regulator over allegations of misleading customers with false discount offers on everyday items, Australia's two largest supermarkets -- Woolworths and Coles -- were now facing class action lawsuits that could entitle affected shoppers to refunds of up to AU$1,300.

The consumer protection law firm, Gerard Malouf & Partners, which filed the lawsuits, announced Thursday that an average customer who bought the specific products from Coles between February 2022 and May 2023, or from Woolworths between September 2021 and May 2023, may be eligible for a refund, reported Reuters.

"We estimate that the average Australian consumer could be eligible for a refund ranging between AU$200 and AU$1300-plus, depending on their shopping habits and purchases at these retailers," the law firm's chairman, Gerard Malouf, said.

The supermarket giants have come under increased scrutiny from lawmakers and regulators, as consumers grappled with rising living costs covering higher interest rates, housing prices, and energy bills.

In September, the Australian Competition and Consumer Commission (ACCC) released an interim report on its supermarket inquiry, revealing that the sector operated as an oligopoly, with Coles and Woolworths together controlling more than 67% of the sales, 9News reported.

The final report, which will include findings and recommendations, was expected to be submitted next February.

The legal firm, however, stated that its class action differed from the ACCC's investigation, as it was seeking refunds for affected consumers.

"We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices Australia-wide," Malouf added.

The lawsuit alleged that everyday products at both Coles and Woolworths were subjected to price increase, with the "discounted" prices either matching or exceeding the prices before the hike. Additionally, the class action seeks to recover the difference between the misleadingly discounted prices and the original, full prices of the items.

While Woolworths closed Thursday's trading at 0.4%, Coles ended the day at 0.2%.