The consumer watchdog’s Federal Court case against Woolworths over its “prices dropped” promotions is underway and will run into next week.

This – and a separate court action against Coles – are crucial legal cases, with the potential for hundreds of millions of dollars in fines.

Around two-thirds of all Australian supermarket sales are made at Woolworths or Coles. So most Australians are likely to have seen some of the disputed “discounts” being fought over in these cases.

Together, these cases will decide the line between unlawful trickery versus legitimate marketing tactics in how every retailer sells products to Australians.

‘Illusory’ or real discounts?

If you followed the Coles “down down” discounts trial in February, the underlying complaint in the current Woolworths case will feel familiar.

The Australian Competition and Consumer Commission (ACCC) alleges both supermarket giants misled shoppers over discounts on hundreds of items.

Interestingly, day one of the Woolworths case on Monday suggests the ACCC intends to run this court case a little differently. Instead of spending time on what the supermarket’s strategy was, as in the Coles case, the ACCC cut straight to its core argument about misleading consumers.

The current Woolworths case is focused on a bundle of 12 everyday products, selected from a longer list of 266........

© The Conversation