A Federal Court judge in Melbourne ruled yesterday that Coles Supermarkets misled shoppers with fake discounts under its "Down Down" promotional campaign.
The ruling highlights systemic issues with retail pricing transparency and the legal requirements for genuine discounts in the Australian market. It establishes a precedent for how the Australian Competition and Consumer Commission (ACCC) monitors promotional marketing.
The court found that Coles breached Australian consumer law by presenting prices as discounts when they were not genuine [1]. During the proceedings, the court examined 14 specific pricing tickets used in the campaign [1]. The judge determined that 13 of those 14 tickets did not represent actual price reductions [1].
This conduct was classified as misleading marketing [2]. The ACCC challenged the "Down Down" campaign, saying that the pricing structures deceived consumers into believing they were receiving a better deal than was actually available [2].
The Federal Court of Australia imposed a fine on the company following the judgment [1]. The ruling emphasizes that retailers must ensure that any "was/is" pricing accurately reflects the previous price of the item for a reasonable period before a discount is advertised [1].
Coles defended its pricing strategies, but the evidence showed the discounts were not legitimate [2]. The judgment serves as a warning to other major retailers regarding the strict application of consumer protection laws in Australia [1].
“Coles was found to have misled shoppers with fake discounts under its "Down Down" promotional campaign.”
This judgment reinforces the ACCC's authority to penalize 'price anchoring'—the practice of inflating a previous price to make a current price seem like a bargain. By finding that nearly all sampled tickets were fraudulent, the court has signaled that superficial promotional branding cannot override the legal requirement for verifiable price drops.
