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.

Australia’s competition regulator said it is suing Woolworths and Coles, the country’s two largest grocery chains, for misleading customers with their discount pricing.

Investing.com-- Australia’s competition watchdog said it had initiated court proceedings against supermarket giants Woolworths Ltd (ASX:WOW) and Coles Group (OTC:CLEGF) Ltd (ASX:COL) over allegedly misleading consumers over price discounts.