Australia's consumer watchdog sued the Oceania country's two largest supermarkets on Monday, accusing Coles and Woolworths of misleading customers by misrepresenting hundreds of products as being discounted.

Australia's consumer watchdog is suing the country's two biggest supermarket chains, alleging they falsely claimed to have permanently dropped the prices of hundreds of items.

Australia's consumer watchdog accused the country's two largest supermarket chains of misleading shoppers about discounts on hundreds of products in lawsuits filed on Monday, tightening pressure on the sector amid a cost-of-living crisis.

Coles Group Ltd. and Woolworths Group Ltd., Australia’s two biggest supermarket chains, have been sued by the country’s competition regulator over claims they misled shoppers over discounting claims on hundreds of common products.

Coles and Woolworths may be in hot water as the consumer watchdog initiates legal action against them for allegedly misleading customers about discounts on everyday items. If found guilty, the supermarkets could face significant penalties,

The ACCC has launched a federal court action against supermarket giants Coles and Woolworths alleging both companies broke consumer law by promoting misleading discounts.