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Woolworths has denied corporate watchdog claims it tricked Australians with fake discounts, saying the regulator has misrepresented what drives prices at the shelf.

In the Federal Court on Tuesday, the supermarket giant denied temporarily hiking prices on hundreds of items before reducing them by a lesser degree to hide increases from consumers.

Price increases sometimes fell below suppliers' recommendations and occurred against a backdrop of rising inflation after the COVID-19 pandemic, Woolworths' legal team argued.

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"Woolworths was facing significant cost price increases from a large number of suppliers across their full range of products," Robert Yezerski SC said.

"To suggest … Woolworths is engaged in an activity that is involved for them manufacturing prices to then show a drop, we say, just totally misrepresents the true nature of the commercial negotiation."

Woolworths' defence argued the inflationary impacts – which hit grocery items harder than other products and services in the period in question between late-2021 and mid-2023 – were relatively uniform across competitors Coles and Aldi.

The key to determining the case would be the duration prices were temporarily elevated, Justice Michael O'Bryan said.

"One tends to think … if the price establishment period was three months, we wouldn't be here," O'Bryan said.

"If it was always one week, the case might not be fought.

"We're somewhere in the middle, and that's what makes this case rather difficult."

But the ACCC's legal team alleged Woolworths used misleading tactics in its discount campaign.

"The subtle magic of the 'prices dropped' message that draws the consumer in is to say that the new stable price is lower than the old stable price," ACCC silk Michael Hodge earlier told the court.

The ACCC launched the joint action in 2024 against Woolworths and Coles, alleging the supermarket giants broke consumer law using fake discounts to mislead customers.

The reduced prices were often the same or higher than the original shelf prices and therefore deliberately misled consumers, the competition watchdog claims.

Woolworths dropped the marketing campaign after the ACCC brought legal action against it.

Coles made its defence in February but the court's final judgment will be withheld until both supermarket juggernauts have presented their cases.

The commission alleges the conduct involved 266 products sold by Woolworths at different times across 20 months between late 2021 and mid-2023, impacting tens of millions of sales by itself and Coles.

The product list was pared down to 12 agreed items to be scrutinised in court, including a family pack of Tim Tam biscuits, Carman's classic fruit and nut muesli bars and Sakata rice crackers.

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The watchdog is not suggesting Coles and Woolworths colluded or engaged in anti-competitive behaviour as part of the alleged misleading conduct.

In a statement to AAP, Woolworths said it fundamentally disagreed with the claims and at no stage misled or deceived its customers.

"Following COVID, there was a period of extraordinary inflation, and we were acutely aware that customers expected Woolworths to provide value wherever possible," a spokesman said.

"Inflation also put pressure on our suppliers' costs, and we worked with them to reduce the inflationary impact on customers through our 'prices dropped' program."

Australia's supermarket sector has come under heavy scrutiny after cost pressures borne by the COVID-19 pandemic, leading to multiple inquiries.

One such probe found Australian supermarkets to be some of the world's most profitable, with margins expanding in the years after the pandemic.

The case resumes on Wednesday, for the second of a scheduled eight-session hearing.

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A Melbourne shop owner has described how he tackled an accused thief to the ground during an alleged Pokémon card theft.

CCTV footage shows two men enter The Final Boss Collectables in Ravenhall, in Melbourne's west, about 8.30pm yesterday.

Inside the shop, store owner Phillip Dang showed the pair folders of valuable cards, eventually pulling out a sealed Van Gogh Pikachu card worth $1500.

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"They were asking like really weird questions that a lot of real collectors probably wouldn't ask," store owner Phillip Dang said.

After failing to distract Dang, one of the men allegedly pinched the card from in front of him, fumbling it momentarily before the pair made a run for it.

"I was like, am I actually getting robbed? Are they really doing this right now?" Dang said.

Dang and several other staff members gave chase and one of the alleged offenders was tackled to the ground by Dang, who apprehended him until police arrived.

"He was just begging me to let him go. He was just saying 'please, I'll never do it again'," Dang said.

The second man managed to flee, police allege.

Police seized a knife from the first man but do not believe it was used during the alleged theft.

"We looked and we saw a machete in his pocket, it had a leather cover over it," Dang said.

"I was staring at it like, that could have gone right through me."

The 23-year-old Tarneit man was charged with theft from a shop and possessing a controlled weapon.

He was bailed to appear before Sunshine Magistrates' Court on July 30.

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Despite scouring the area, police couldn't find the second ma. 

They are working to identify him.

The rare Pikachu card remains outstanding.

"In retrospect, I kind of made a mistake with the card I picked to try and bait them out. It was a pretty expensive card," Dang said.

While Dang valued the card at $1500, another identical card is currently sitting at $5000 as part of an online auction. 

The store owner says his shop is just the latest to be targeted for the valuable collector's items.

He's been forced to bolster the store's security to protect his staff.

"They didn't come here to be threatened or potentially witness a theft, have to chase someone down, that's not their job, it's not my bloody job but I'll do it," he said.

Anyone who can assist in identifying the man, with footage or with further information is urged to contact Crime Stoppers on 1800 333 000 or anonymously atwww.crimestoppersvic.com.au

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Geoff Allott is understood to be the last candidate leftfrom a three-person shortlist.

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An expert says there are three reasons more slips could occur in the capital.

Severe hail storms that pummelled Queensland's south-east and northern New South Wales last year left a higher insurance bill than ex-Tropical Cyclone Alfred, the Insurance Council of Australia (ICA) has revealed, as it warns war in the Middle East will only increase the costs associated with repairing and rebuilding homes after extreme weather.

The ICA has upped its last total for extreme weather-related insurance losses in 2025 from $3.5 billion to $4.8 billion due to increased costs and further claims being lodged.

The severe storm and hail event in November led to almost 93,000 claims totalling $1.78 billion, including hail damage to cars, glass and roofs, as well as homes inundated with storm water and damage caused by uprooted trees.

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In comparison, Alfred had a higher claims count, at 133,000, but cost around $1.5 billion.

Queensland was home to four of the five most expensive extreme weather events, with the North Queensland floods and spring storms in south-east Queensland costing $316 million and $895 million respectively.

"While Queensland is no stranger to extreme weather, four severe events impacting a single state in 12 months is significant, with many communities still on the road to recovery," ICA CEO Andrew Hall said.

"The insurance industry is very alive to supply chain challenges and pressures across the construction and transport sectors as a result of ongoing conflict in the Middle East.

"The reality is, these cost increases will add to the already stubbornly high price to rebuild and repair homes when they are damaged."

The ICA also found across the country, insurers handled almost six times as many claims from extreme weather in 2025 than the year before, costing $4.8 billion in insured losses and a whopping $8.6 billion when adding the wider economic costs.

The most effective way to protect communities and ease cost pressures is to build the flood levees, dams and other large-scale infrastructure that keep homes and businesses out of harm's way," Hall said.

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