Australian Competition and Consumer Commission (ACCC) chairwoman Gina Cass-Gottlieb said it is "likely" the regulator will take court action against Woolworths Group (ASX:WOW) and Coles Group (ASX:COL), as the country's new price gouging laws come into effect from July 1, the Australian Financial Review reported on Monday.

Under the new law, supermarkets found to have excessive pricing could face fines of up to AU$10 million per breach or 10% of the turnover in the preceding 12 months.

Cass-Gottlieb said that any legal action would depend on the supermarket giants' compliance with the new laws, per the report.

The regulator is already pursuing an action against Woolworths and Coles, alleging that they raised prices on some products by up to 15% before cutting them as promotions.

"The ACCC found no evidence of excessive pricing in its final report last year following its 12-month inquiry into supermarkets," a spokesperson for Coles said in an emailed statement to MT Newswires. "This followed extensive data and information provided by Coles across thousands of products. The report confirmed that higher grocery prices have been driven by rising costs across the supply chain, including energy, fuel, insurance, production, freight and distribution."

Woolworths did not immediately respond to MT Newswires' request for comment.

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