Australian Court Says Retail Giant Coles Misled Shoppers With Fake Discounts
Australia’s federal court rules Coles misled consumers with fake discount promotions under its “Down Down” campaign.
SociapaHQ
Coles Group has been found by Australia’s federal court to have misled consumers through fake discount promotions, in a ruling that could lead to significant financial penalties for the supermarket giant.
The case was brought by the Australian Competition and Consumer Commission (ACCC), which accused Coles of misleading customers through its “Down Down” promotional campaigns on hundreds of products, BBC reported.
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Court Rejects Discount Claims:
According to the ACCC, Coles temporarily increased product prices before advertising them as discounted offers, creating the impression of savings that were not genuine.
The watchdog alleged that the supermarket misled consumers on 245 products between February 2022 and May 2023, covering items ranging from toothpaste to biscuits.
Justice Michael O'Bryan, who is also overseeing a similar case against Woolworths Group, ruled on Thursday that the discounts promoted by Coles were “not genuine.”
Of the 14 sample products examined during the case, the court found that 13 promotions would likely have misled an ordinary consumer because they did not represent real savings.
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Retail Pricing Practices Under Scrutiny:
Justice O’Bryan said products would need to remain at the higher “was” price for at least 12 weeks before a discount promotion could reasonably be considered genuine.
“The Down Down tickets for the sample products would not have been misleading if the products had been sold at the ‘Was’ price for a minimum period of twelve weeks immediately preceding the Down Down promotion,” he wrote.
One product, Nature’s Gift Dog Food, was excluded from the misleading conduct finding because the promotional ticket did not display a “was” price.
Coles said it was reviewing the judgment and stated that its priority “has always been delivering value to our customers.”
The retailer also argued that the case highlighted the need for clearer guidance around minimum price establishment periods to help retailers avoid future legal disputes.
The ruling comes amid growing scrutiny of Australia’s supermarket sector, particularly around allegations of price gouging and anti-competitive practices involving Coles and Woolworths, which together account for around two-thirds of the country’s grocery market.
The ACCC is currently pursuing a separate case against Woolworths involving allegations related to 266 products over a 20-month period. A decision in that case is expected later this year.
Any financial penalty against Coles will be determined during future hearings.
