Coles Faces Legal Action Over Misleading Discounts

Australia's second-largest grocery chain, Coles, has been found guilty of misleading customer conduct, as a court ruled they inflated prices on hundreds of household items before advertising discounts higher than the original price.

The Australian Competition and Consumer Commission (ACCC) filed the case in 2024, along with a similar lawsuit against Woolworths, during heightened scrutiny of supermarket pricing amid inflationary pressures. Between February 2022 and May 2023, Coles advertised discounts on 245 products, with a Federal Court focusing on 14 items under the 'down down' promotion during a trial this year.

Justice Michael O'Bryan declared that while Coles raised its prices to cover rising supplier costs, the promotional discounts appeared misleading due to premature application. Verdicts showed that 13 out of 14 promotions did not meet the advertised 'was' price for a reasonable duration, making the 'down down' discount deceptive.

(With inputs from agencies.)