Court Finds Coles Misled Shoppers with Discount Claims in Australia
Court rules Coles misled shoppers with its ‘Down Down’ discount campaign
The Guardian
Image: The Guardian
The federal court in Australia ruled that Coles misled customers with its 'Down Down' discount campaign, falsely advertising discounts on grocery products. The Australian Competition and Consumer Commission accused Coles of disguising price increases, leading to a significant ruling against the supermarket chain.
- 01Coles misled shoppers with its 'Down Down' discount campaign.
- 02The Australian Competition and Consumer Commission (ACCC) brought the case against Coles.
- 03Coles used misleading 'was/is' pricing strategies to promote discounts.
- 04The court found that the 'was' prices were often only in effect for a short time.
- 05A similar case against rival Woolworths is still pending.
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In a landmark ruling, the federal court in Australia determined that Coles, the country's second-largest supermarket chain, misled consumers through its 'Down Down' discount campaign. Justice Michael O’Bryan found that Coles falsely advertised discounts on 245 grocery products by using misleading 'was/is' pricing strategies. The supermarket had increased prices for a brief period before advertising them as discounted, without disclosing the short duration of the higher prices. This practice was deemed a violation of Australian consumer law by the court. The Australian Competition and Consumer Commission (ACCC) initiated the lawsuit, claiming that both Coles and its rival Woolworths misled shoppers during a time of rising inflation. O’Bryan acknowledged that while Coles had been responding to supplier price increases, the way they presented their discounts was misleading. The case against Woolworths is still pending, with further updates expected soon.
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This ruling may lead to increased scrutiny of pricing practices in the supermarket industry, potentially affecting grocery prices for consumers.
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