Perth, May 14: The Federal Court has found Coles Supermarkets Australia made false or misleading representations about its “Down Down” discounts, following legal action brought by the ACCC.
The case centred on 245 common products sold by Coles.
The ACCC alleged Coles temporarily raised the price of each item by at least 15 per cent for a short period, before placing the products on “Down Down” promotion at prices that were still higher than, or the same as, their original prices.
The ACCC argued the discounts were illusory and breached the Australian Consumer Law.
The liability hearing considered an agreed sample of products from the broader list of 245.
The Court found Coles made misleading representations in 13 of the 14 “Down Down” tickets examined.
“We welcome the Court’s finding that Coles breached the Australian Consumer Law,” ACCC Chair Gina Cass-Gottlieb said.
“The ACCC brought this case in the public interest because we considered that Coles’ pricing practices within its ‘Down Down’ program made it harder for customers to identify genuine value for money while shopping for household essentials.”
“We had received complaints by consumers about the ‘Down Down’ discounting claims made by Coles. We understand how important it is for consumers to get value for their supermarket purchases, and decided to take action to test the discounting practices in Court,” Cass-Gottlieb said.
“This case has increased transparency and accountability in relation to Coles’ Down Down program.”
Penalties and other orders sought by the ACCC will be determined at a later date.
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