Australian grocers Woolworths and Coles said on Friday they would defend class action proceedings commenced by a law firm in federal court over alleged misleading discount claims. The comments sent shares of Woolworths up as much as 1.

Coles and Woolworths have been slugged with a new class action following allegations by the competition regulator that the supermarkets made false promises to offer best prices for cash-strapped shoppers.

Weeks after the country’s two largest supermarkets, Coles and Woolworths, were taken to Federal Court by the Australian Competition & Consumer Commission (ACCC) over claims that it offered “fake” and “illusory” discounts,

Law firm Gerard Malouf and Partners has lodged two class action suits against the supermarket giants in the Federal Court, alleging they breached Australian consumer law through misleading promotional discounts on hundreds of items. Both Coles and Woolworths on Friday told shareholders they would defend themselves against the class actions.

The Sydney-based firm GMP Law lodged the lawsuit in the Federal Court on Thursday, and says consumers who join could get refunds ranging from $200 to $1300.

Gerard Malouf and Partners (GMP Law) has lodged class action lawsuits against the two supermarket giants in Federal Court today over allegations they promoted misleading discount