A Federal Court judge ruled Thursday that Coles Supermarkets misled consumers through its ‘Down Down’ pricing claims on hundreds of products [1].

The ruling marks a significant victory for the Australian Competition and Consumer Commission (ACCC) and highlights the legal risks retailers face when using aggressive discount marketing. It signals that the court will scrutinize the authenticity of "previous prices" used to justify current sales.

The court found that Coles breached the Australian Consumer Law by advertising discounts that were not genuine [2]. According to the judgment, the ‘Down Down’ discounts were based on previous prices that were offered for too short a period to be considered a legitimate benchmark [2], [3]. This practice misled shoppers into believing they were receiving a better deal than existed in reality.

The misconduct affected hundreds of common supermarket products [1]. The ACCC said this approach misled customers on an industrial scale, creating a false impression of value across a wide range of inventory [2].

Coles now faces substantial financial penalties. The retailer could be subject to fines totaling hundreds of millions of dollars [4]. The court's decision underscores the requirement for businesses to ensure that any price comparison used in advertising is based on a genuine, and representative, previous price.

The judgment was delivered in the Federal Court of Australia in Sydney [2], [3]. This case serves as a warning to other retailers regarding the transparency of promotional pricing, and the enforcement of consumer protection laws in Australia.

“Coles misled consumers through its ‘Down Down’ pricing claims on hundreds of products.”

This ruling establishes a strict precedent for 'was/now' pricing in Australia. By determining that a price must be active for a reasonable duration to be considered a genuine benchmark, the court is limiting the ability of retailers to manipulate price cycles to create the illusion of constant discounts. This may force a systemic shift in how supermarkets manage promotional calendars to avoid further litigation.