Woolworths and Coles blame suppliers and ‘outbreak of high inflation’ in fake discounts case

The Australian Competition and Consumer Commission sued the supermarkets last month, alleging they had breached consumer law on hundreds of common supermarket products. Photograph: Joel Carrett/AAP

Supermarket giants Woolworths and Coles have blamed supplier-requested price increases amid a “sudden outbreak of high inflation” in response to allegations by the consumer regulator they deceived customers with fake discounts.

Woolworths and Coles appeared in the federal court in Melbourne on Wednesday for the first time since the Australian Competition and Consumer Commission last month launched legal action against the companies for allegedly misleading customers with “illusory” discounts on hundreds of common supermarket products.