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AAP
AAP
Duncan Murray and Adrian Black

UNBELIEVABLE: Spotlight back on top woolies executive at prices probe - The Untold Story

Woolworths hiked a price of baby food from $5 to $6.50 for three weeks before reducing it by 50c. (HANDOUT/FEDERAL COURT OF AUSTRALIA)

Woolworths simultaneously negotiated with Nestle to both increase the cost of baby food and market it under a "Prices Dropped" campaign, raising the price for three weeks before spruiking the discount, a court has been told.

The supermarket giant agreed to include Nestle's Cerelac baby rice in the promotion before ever selling it at the marketed "was" price, a landmark consumer rights trial in the Federal Court hearing was told on Thursday.

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