An Australian Federal Court judge ruled on Thursday that supermarket chain Coles misled shoppers by offering fake discounts on common household items [1].

The ruling highlights systemic failures in how major retailers communicate pricing to consumers, a critical issue during periods of high inflation and cost-of-living pressures.

The court found that Coles breached Australian consumer law through its "Down Down" promotional campaign [2]. According to the judgment delivered in Sydney, the company engaged in misleading conduct by offering discounts on 245 household items [2].

Justice Michael O'Bryan determined that the promotional pricing was deceptive because the original prices used for comparison were not genuine. The court found these previous prices were offered for too short a period to be considered real [3].

"The discounts were based on previous prices that were offered for too short a period to be considered real," O'Bryan said [3].

This legal finding follows an investigation into the scale of the pricing practices. Reporters for ABC News said that the supermarket giant broke consumer law by misleading shoppers on discount prices [1]. The judgment indicates that the misleading conduct occurred on an industrial scale [4].

Coles has frequently used the "Down Down" branding to signal long-term price reductions to customers. However, the court's findings suggest that these perceived savings were not based on legitimate historical pricing data [2].

“The discounts were based on previous prices that were offered for too short a period to be considered real.”

This ruling sets a significant legal precedent for the Australian retail sector regarding 'was/now' pricing. By defining a specific timeframe for how long a price must be active to be considered a genuine 'previous price,' the court is restricting the ability of retailers to create artificial discounts to drive sales volume.