By Blessing Nweke
Australia’s Federal Court has ruled that supermarket giant Coles Group misled consumers through fake discount promotions, in a landmark decision that could result in substantial financial penalties for the retailer.
The case was brought by the Australian Competition and Consumer Commission, which accused Coles of falsely advertising discounts through its well-known “Down Down” campaign. The watchdog argued that the supermarket temporarily increased prices on products before reducing them again and presenting the prices as special offers.
Justice Michael O’Bryan agreed with the regulator, ruling on Thursday that the discounts were “not genuine” and likely misled ordinary consumers. The court examined 14 sample products submitted by the ACCC and found that 13 of them did not represent real savings.
The products involved included everyday grocery items such as toothpaste, biscuits and household goods sold between February 2022 and May 2023. According to the ACCC, misleading pricing affected 245 products over the 15-month period.
Justice O’Bryan said products should remain at the higher “was” price for at least 12 weeks before a discount can reasonably be promoted as genuine. He stated that the “Down Down” labels would not have been misleading if the products had been sold at the earlier price for that minimum period.
One product, Nature’s Gift Dog Food, was excluded because its promotional ticket did not display a previous “was” price.
Coles said it was reviewing the judgment and maintained that its priority had always been delivering value to customers. The company also called for clearer industry guidance on pricing promotions to avoid future litigation.
A separate ACCC case against Woolworths Group over similar allegations is still before the courts, with a ruling expected later this year.
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