Federal Court Finds Supermarket Misled Consumers with Fake Discount Pricing on Everyday Goods.
In a landmark ruling that could have major implications for Australia’s supermarket industry, the Federal Court has found that retail giant Coles misled consumers by advertising fake discounts under its prominent “Down Down” promotional campaign.
Justice Michael O’Bryan ruled on Thursday that in 13 out of 14 sample pricing tickets examined, Coles engaged in misleading conduct by temporarily inflating prices before presenting them as discounted “Down Down” offers. The Australian Competition and Consumer Commission (ACCC) brought the case, accusing the supermarket chain of duping shoppers on hundreds of common household items between 2022 and 2023.
Court Finds Coles Used Illusory Discounts on 245 Products:
The court heard that Coles would raise the price of products such as biscuits, yoghurt, soft drinks, pet food and cheese for a short period-sometimes just a few weeks-before slashing them back to the original price and marketing the reduction as a special discount.
Justice O’Bryan stated that the higher “Was” price displayed on promotional tickets had not been offered for a reasonable period, making the claimed discounts illusory and likely to mislead the average consumer.
The ACCC’s case covered 245 products, highlighting widespread concerns over supermarket pricing practices amid Australia’s cost-of-living crisis.
Court Ruling Hits Supermarket Discounts:
ACCC Chair Gina Cass-Gottlieb welcomed the decision, describing it as an important win for consumer transparency. The ruling comes as Australian households continue to struggle with high grocery prices, making perceived discounts a critical factor in shopping decisions.
A separate but similar case against rival supermarket chain Woolworths is also underway before the same judge.
Coles has not yet issued a detailed public response to the judgment. The company could face significant financial penalties, with potential fines running into tens or even hundreds of millions of dollars. Further hearings will determine the exact penalties and any remedies for affected consumers.
The decision is expected to put pressure on Australia’s two major supermarket chains to review their pricing and promotional practices more rigorously. Consumer groups have described the ruling as a “long-overdue accountability measure” in an industry long criticised for opaque pricing strategies.