Australia’s consumer watchdog has scored a major victory after taking supermarket giant Coles to court over what it described as misleading and deceptive discounting practices on hundreds of everyday products.
The ACCC accused Coles of inflating the prices of 245 common household items including paper towels, dog food and yoghurt before placing them under its high‑profile “Down Down” promotion between February 2022 and May 2023. According to the regulator, many shoppers ended up paying the same or even more than the usual price, making the so‑called discounts illusory.
ACCC Chair Gina Cass‑Gottlieb said the case was brought because the watchdog believed Coles’ promotional tactics made it harder for consumers to identify genuine value. “We know how important it is for consumers to obtain real value in their supermarket purchases, so we decided to test these pricing practices in court,” she said, adding that the outcome boosts transparency and accountability across the sector.
Former ACCC chairman Allan Fels called the ruling “a big win for the ACCC and a huge blow to Coles,” predicting substantial fines, reputational damage and the likelihood of a class action. “It will end fake discounts by big supermarkets,” he said.
Coles is not alone under scrutiny. Rival supermarket Woolworths is also facing legal action over similar allegations of deceptive discounting, with a judgment still pending. Fels suggested the writing is already on the wall, saying it was “safe to say Woolworths is a goner.”
The decision marks a significant moment for supermarket pricing in Australia, with regulators signalling a tougher stance on promotions that may mislead consumers struggling with rising living costs.
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