Watchdog seeks big penalty after Coles goes ‘Down Down’

A landmark ruling that Coles misled shoppers done illusory discounts sends a wide connection astir the request to spot shoppers’ understanding supra contention tactics, the user watchdog says.

Coles deliberately disguised terms hikes arsenic discounts under its “Down Down” terms campaign, Federal Court justice Michael O’Bryan recovered connected Thursday.

“Thirteen of 14 ‘Down Down’ tickets that were the subject of information successful the associated liability trial were misleading due to the fact that the applicable products were not sold astatine the ‘was’ terms stated connected the summons for a tenable period,” Justice O’Bryan said.

“As a consequence, the discount represented connected the tickets was not genuine.”

The Australian Competition and Consumer Commission brought abstracted but akin cases against the country’s two ascendant supermarket chains with a Woolworths suit awaiting judgement astatine a aboriginal date.

Both cases alleged the supermarkets misled consumers by expanding prices for a abbreviated clip earlier lowering them to supra the archetypal terms and selling it arsenic a discount.

ACCC seat Gina Cass-Gottlieb said the ruling sent a connection to each retailers to cautiously see the understanding of the mean lawsuit successful devising promotions.

ACCC Chair Gina Cass-Gottlieb said the ruling sent a connection to each retailers to cautiously see the understanding of the mean lawsuit successful devising promotions, Thursday, May 14, 2026. Photo: AAP/Dean Lewins

“Firms should proceed to springiness discounts … but it has to beryllium close and well understood by consumers,” she said.

The determination could mean the $28 cardinal institution is deed with important penalties, which will beryllium the subject of treatment by the parties.

It was important immoderate punishment could not simply beryllium written disconnected arsenic the outgo of doing concern and was astatine a level that meant it acted arsenic a important deterrent, Ms Cass-Gottlieb said.

“The ACCC will question a substantial penalty, reflecting the value of close pricing for consumers,” she said.

Coles said successful a statement it acknowledged and was reviewing the judgment.

Justice O’Bryan noted that until March 2022, Coles’ ain interior policies stipulated a merchandise could not beryllium sold under the “Down Down” promotion unless it had been sold astatine the erstwhile terms for a minimum play of 12 weeks.

But the institution relaxed its argumentation under perceived unit from its main competitor, Woolworths.

Justice O’Bryan recovered the pricing would not person been misleading if the products were sold astatine a higher outgo for 12 weeks earlier being marketed arsenic a discount.

“The vast bulk of mean consumers, when buying would not person formed immoderate conscious content astir the play for which the merchandise had been offered for merchantability by Coles … beyond an intuitive consciousness the discount being promoted was genuine and not artificial,” helium said.

Justice O’Bryan besides ruled 1 of the products sold under the “Down Down” campaign, a tin of Nature’s Gift canine food, was not misleading due to the fact that it did not see a “was” terms connected the ticket.

The watchdog identified hundreds of products connected the Coles run and a akin “Prices Dropped” propulsion from Woolworths that followed a akin formula.

During abstracted hearings, lawyers for some supermarket giants argued prices accrued owed to inflationary pressures and the discounts were genuine.

Coles’ barrister John Sheahan said “ordinary, tenable consumers” knew that prices mostly trended upward owed to inflation.

By aboriginal afternoon, Coles’ stock terms was down astir 2.5 per cent, while Woolworths had a smaller dip of astir 1.9 per cent.