How ‘was/is’ pricing works – and why it’s landed Coles and Woolworths in court

The competition regulator provided an example of alleged conduct by Woolworths – which, alongside Coles, it has accused of briefly increasing prices on hundreds of products before placing them in discount promotions – by using its pricing of a 370g Oreo family pack. Photograph: Dado Ruvić/Reuters

The competition regulator has taken Coles and Woolworths to court over what is commonly known as “was/is” comparative pricing.

The allegations, which Coles said it would defend and Woolworths said it would review, could result in large fines and unravel the supermarkets’ well-known “Down Down” and “Prices Dropped” promotions, which are at the heart of their marketing campaigns.