Australian Court Rules Coles Misled Customers With Fake Discounts
Australian supermarket giant Coles has been found guilty of misleading consumers through deceptive discount promotions after a federal court ruled that several advertised price reductions were not genuine.
The case was brought by the Australian Competition and Consumer Commission (ACCC), which accused the retailer of temporarily increasing prices before promoting them as discounted under its popular “Down Down” campaign.
In Thursday’s ruling, Justice Michael O’Bryan agreed with the consumer watchdog, stating that the promotions would have misled ordinary shoppers into believing they were receiving genuine savings.
According to the ACCC, Coles misrepresented discounts on 245 products between February 2022 and May 2023. The products reportedly included household and grocery items such as toothpaste and biscuits.
As part of the proceedings, the court reviewed 14 sample products used in the case and determined that 13 of them involved misleading pricing practices.
The judge explained that for a discount to be considered legitimate, products should have been sold at the higher “was” price for at least 12 weeks before any promotional reduction was advertised.
One product, Nature’s Gift Dog Food, was excluded from the misleading claims because its promotional ticket did not display a previous “was” price.
Coles, which denied wrongdoing during the case, said it is reviewing the court’s decision.
The company stated that its focus has always been on delivering value to customers while also calling for clearer guidance on pricing and promotional regulations within the retail industry.
The ruling adds to growing scrutiny surrounding Australia’s major supermarket chains, particularly Coles and Woolworths, which together dominate a large share of the country’s grocery market.
Both companies have faced criticism over alleged price gouging and anti-competitive behaviour amid rising living costs.
The ACCC is also pursuing a similar legal case against Woolworths over alleged misleading discount campaigns involving hundreds of products.
A separate ruling in that case is expected later this year.
The court has not yet determined the financial penalty Coles could face, although analysts expect any eventual fine to be substantial.
