Australian giant Coles misled shoppers with fake discounts, court rules
Summary
Australia’s federal court ruled that supermarket chain Coles misled customers with fake discount promotions by raising prices before sales. The court found that most of the discounted items were not genuine savings, and Coles may face large penalties.Key Facts
- The court case was brought by the Australian Competition and Consumer Commission (ACCC).
- Coles advertised “Down Down” promotions on 245 products between February 2022 and May 2023.
- The court found that 13 out of 14 tested products did not show real discounts.
- For a discount to be genuine, the higher price must be in place for at least 12 weeks before the sale.
- One product, Nature’s Gift Dog Food, was found not to be misleading because it had no previous “was” price.
- A similar case is underway against Woolworths, Coles’ main competitor, over misleading discounts.
- Both supermarkets hold about two-thirds of Australia’s grocery market.
- Coles said it is reviewing the judgment and called for clear rules to avoid future legal issues.
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