Woolworths Price Drop Claims Under Scrutiny: 96% of ‘Discounted’ Products Actually Cost More

Sydney, Australia – A recent investigation by The Age has revealed that despite Woolworths’ public claim of slashing prices on 276 products, 96% of those items actually increased in cost compared to their prices just weeks earlier. The findings raise serious questions about the transparency of promotional pricing strategies used by Australia’s largest supermarket chain.

The report, based on price tracking data collected over a six-week period, found that while Woolworths advertised significant reductions across a range of grocery and household items, the majority of these so-called “price drops” were applied to products that had recently been marked up — often to levels higher than their original baseline.

For example, a 1kg bag of Woolworths Select rice was advertised as “down from $3.50 to $2.90,” but internal price logs showed it had been raised from $2.50 to $3.50 just two weeks prior — meaning the “discount” still left consumers paying 40% more than before the promotion began.

Consumer advocacy group CHOICE called the practice “misleading at best,” noting that while technically compliant with Australian Consumer Law (which requires only that a discount be compared to a recent price, not a fair or historical one), it erodes trust in retail pricing.

“Retailers are exploiting a loophole in how ‘was/now’ pricing is regulated,” said Ingrid Just, senior spokesperson for CHOICE. “If a product’s price is artificially inflated just before a sale, then dropped back to near-original levels — or even slightly above — it creates the illusion of savings without delivering real value.”

Woolworths defended its approach, stating that all price comparisons adhere to the guidelines set by the Australian Competition and Consumer Commission (ACCC). A spokesperson said: “We regularly review our pricing to ensure it reflects market conditions and provides value to our customers. All promotional claims are substantiated and comply with advertising standards.”

Still, independent price analysts from Canstar Blue and Finder’s Grocery Price Index corroborated The Age’s findings, noting a broader trend across major supermarkets of using short-term price hikes to amplify the perceived impact of discounts.

The ACCC has previously warned retailers about misleading price representations, issuing guidance in 2022 that “reference prices must not be misleading about the savings available.” While no formal action has been taken against Woolworths in this instance, the watchdog confirmed it monitors pricing practices and will act if claims are found to be deceptive.

For shoppers, the takeaway is clear: always check price history before assuming a “sale” means real savings. Tools like Trolley and iShopper allow users to track product prices over time, helping distinguish genuine discounts from promotional illusions.

As cost-of-living pressures continue to strain household budgets, transparency in pricing isn’t just a regulatory issue — it’s a matter of consumer trust. Until advertising standards evolve to require comparisons against longer-term fair values, shoppers are advised to remain vigilant.

Key Takeaways

• Woolworths claimed price reductions on 276 products, but 96% were more expensive than they were just weeks prior.
• The “discounts” were often applied after recent price increases, meaning consumers paid more than before the promotion.
• While technically compliant with current Australian Consumer Law, the practice is criticized as misleading by advocacy groups.
• The ACCC requires only that reference prices be recent, not fair or historical — a loophole retailers are exploiting.
• Independent price-tracking tools can assist shoppers identify real savings versus promotional illusions.

Frequently Asked Questions (FAQ)

Is it illegal for Woolworths to advertise a price drop after raising the price first?

Not necessarily. Under Australian Consumer Law, a business can compare a sale price to a previous price, even if that previous price was only in effect for a short time. However, if the reference price is misleading about the savings available, it may breach advertising standards enforced by the ACCC.

How can I tell if a discount is real?

Check the item’s price history using apps like Trolley or iShopper, or manually track prices over several weeks. A genuine discount typically compares to a price that was stable for a month or more, not one that was just raised.

Are other supermarkets doing the same thing?

Yes. Similar patterns have been observed at Coles and Aldi, though the frequency and magnitude vary. Independent analyses suggest this is a widespread tactic in competitive retail environments.

What is the ACCC doing about misleading pricing?

The ACCC has issued guidance warning against deceptive reference prices and investigates complaints. It can issue infringement notices or pursue court action if a breach is found, though proving intent to mislead can be challenging.

Should I stop trusting ‘price drop’ labels at Woolworths?

Not necessarily — but treat them with skepticism. Seem for consistency: if a product’s “was” price seems unusually high or recent, it may be inflated to make the discount look better than it is.