Coles and Westpac in a battle against corporate greed

With ordinary Australians fighting back, corporate Goliaths are finally struggling to put profits before people, he writes Carl Rhodes.

FEBRUARY has been a month of high-profile corporate litigation in Australia; Both shed light on an economy where customer welfare is unimportant without profit.

in what is called “”case of the century”, Coles advocates for a big ACCC action Allegation that a planned campaign was carried out to mislead customers about discounts on more than 200 daily products.

Meanwhile, Westpac was accused of acting without basis in the NSW Supreme Court. morality After using his corporate power against a customer for a trivial shortcoming not his fault.

In both cases, the same pattern emerges, where powerful institutions use legal teams, algorithms, and market dominance in ways ordinary people cannot match.

These are modern David and Goliath battles where David is just trying to buy food or get a mortgage. The good news, at least this month, is that David is fighting and winning.

defending the indefensible

What is particularly striking in both cases is the lengths to which corporations will go to defend the moral justification of behavior that smacks of greed and immoral self-interest.

at westpac caseJudge David Hammerschlag described the bank’s conduct as “unconscionable” and said the bank was trying to “defend the indefensible”.

It all started when plaintiff Fiona Vinall accidentally underpaid her mortgage following an unspecified rate change. communication A statement from the bank led one to think the discount was taking effect earlier than it actually was.

The $44.11 deficit was later reported to credit agencies as “negative repayment history information,” leading to a sharp drop in credit score and denial of a loan for a new home.

Vinall repeatedly asked the bank to correct the error so he could move on with his life. The bank flatly refused.

Even when Westpac’s lawyers showed up courtThey argued that the bank was “powerless” to resolve the problem. They suddenly found power when the court directed Westpac’s CEO to join. Only then did they finally reverse course and remove the black mark from his file.

As Judge Hammerschlag stated, refusing to resolve the problem “is not legally justifiable and is contrary to business ethics.”

Down, down for Coles

The case against Coles is ongoing, but the evidence presented so far is quite serious. Take your example StrepsilsIt’s a lozenge that people across the country rely on to relieve unwanted sore throats.

At least 649 days Coles sold a 16-pack of Strepsils honey and lemon throat lozenges for $5.50. The price was only increased to $7 for 28 days and then reduced to $6, the ACCC told the court.

This “discounted” price was introduced as part of the supermarket’s “down, down” campaign, which it has been running since 2010.

coles defended He said there was no scam, that $7 was a “real, non-discounted shelf price” and that “the next discount program price […] a real discount”. The retailer location that the discount claimed was not misleading in any way and represented good value.

As with Westpac, this is a ‘nothing to see here’ defence.

Coles’ lawyer said The court contemptuously said:

“All prices are temporary. Nothing lasts forever.”

Cash-strapped shoppers struggling with the cost of living crisis have a different view.

a customer in question:

“This is one of the biggest scams to ever hit the markets.”

Strepsils may be a standout, but it’s far from the only thing. example. The court is examining pricing Behavior of 245 household items. Arnott’s Shapes, dog food, baby food, yoghurt and deodorant all show the same brief price increase followed by a so-called discount that leaves customers paying more than before.

Goliath in the system

It’s not just a matter of whether Coles or Westpac behaved badly. The economic system we have built rewards them for doing this. When commercial gain trumps justice, when profiteering is treated as professionalism, and when customers become data points rather than people, greed and negligence cease to be perversions and become a business model.

But these cases show that corporate Goliaths are not untouchable. Regulators, courts and ordinary people are pushing back. Every decision, every challenge, every client who refuses to be crushed, destroys the idea that power transcends accountability.

If we want a fairer economy, we need to confront the structures that enable, reward and ignore exploitation. This means stronger oversight, greater transparency, and a cultural shift to recognize that markets serve society; not the other way around.

David may be winning this month, but lasting change will require more than a slingshot. The rules will need to be rewritten so that fairness and kindness are the standard, not the exception.

Carl Rhodes is Professor of Business and Society at the University of Technology Sydney. Wrote several books On the relationship between liberal democracy and contemporary capitalism. You can follow him on X/Twitter @ProfCarlRhodes.

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