Court rules Coles misled shoppers with its ‘Down Down’ discount campaign
Summary
A federal court ruled that Coles, a major Australian supermarket, misled customers by showing fake discounts in its "Down Down" price campaign. The court found that Coles raised prices briefly before claiming to offer discounts, which was misleading under Australian consumer law.Key Facts
- The court case was brought by the Australian Competition and Consumer Commission (ACCC) against Coles.
- Coles advertised discounts using "was/is" pricing but did not tell customers the higher "was" prices lasted only a short time.
- The supermarket sold many products at a lower price for about a year, raised them briefly, then lowered the price again, which was sometimes equal to or higher than the original price.
- The judge said Coles’ price increases were normal business practice, responding to supplier demands during inflation.
- However, showing short-term price increases as the baseline for discounts misled shoppers.
- The court ruled this practice broke Australian consumer laws against misleading conduct.
- A similar case involving Woolworths, another major supermarket, is still ongoing in federal court.
- The decision affects how supermarkets advertise discounts during inflation periods.
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