In a significant ruling that has sent shockwaves through the Australian retail sector, Woolworths' discount department store Big W has been found guilty of misleading consumers with its promotional pricing strategy.
The Controversial Campaign
The Advertising Standards Board investigated Big W's "Every Day Low Prices" campaign following multiple consumer complaints. The investigation revealed that the retail giant had been comparing current prices to previous higher prices that weren't genuine market rates.
Key findings from the ruling include:
- Big W failed to demonstrate that the higher comparison prices were actually charged for a reasonable period
- The "was/now" pricing created a false impression of significant savings
- Consumers were misled about the true value of the discounts being offered
Consumer Backlash and Complaints
The investigation was triggered by numerous shoppers who reported feeling deceived by the pricing strategy. One complainant noted that the advertised discounts appeared "too good to be true," while others expressed frustration at what they perceived as manipulative marketing tactics.
"When consumers see a 'was' price next to a 'now' price, they reasonably expect that the higher price was recently charged in the same store," explained a spokesperson from the consumer advocacy group.
Industry Implications
This ruling comes at a sensitive time for the retail industry, with many Australian households feeling the pinch of rising living costs. The decision sets an important precedent for how retailers across the country can advertise price comparisons and promotional discounts.
The advertising watchdog emphasised that:
- Retailers must ensure comparison prices are genuine
- Savings claims need to be substantiated with evidence
- Transparency in pricing is non-negotiable
Woolworths' Response
While Woolworths has acknowledged the ruling, the company maintains that its intention was always to provide value to customers. The retail giant has committed to reviewing its advertising practices to ensure full compliance with advertising standards.
This case serves as a crucial reminder to all retailers that in an era of heightened consumer awareness, transparency isn't just good practice—it's mandatory.
