Federal Court Finds Coles' 'Down Down' Discounts Deceptive in 13 of 14 Test Cases

Context The Australian Competition and Consumer Commission (ACCC) sued Coles over alleged price‑inflation tactics tied to its "Down Down" promotions. The watchdog claimed the supermarket raised prices temporarily, then advertised a discount that never represented a real saving. Justice Michael O'Bryan presided over the case, which runs alongside a similar ACCC action against rival Woolworths.

Key Facts - The court concluded the discounts were "not genuine" after reviewing 14 sample items. - Thirteen of those items failed to show a genuine saving, meaning an ordinary consumer would have been misled. - Only one product, Nature's Gift Dog Food, avoided the finding because its ticket omitted a "was" price. - The ACCC alleged Coles misled shoppers on 245 products, ranging from toothpaste to biscuits, over a 15‑month period from February 2022 to May 2023. - Justice O'Bryan noted that a discount can be genuine only if the higher price was in effect for at least 12 weeks before the promotion. - Coles rejected the allegations, stating it is reviewing the judgment and reaffirming its commitment to delivering value.

What It Means The ruling sets a legal benchmark for how long a retailer must maintain a higher price before offering a discount. Failure to meet the 12‑week threshold could expose other retailers to similar challenges. While the court has not yet imposed a fine, penalties are expected in later hearings and could be substantial. The decision also pressures the ACCC to clarify guidance on price‑establishment periods, a move Coles says would reduce future litigation. Watch for the upcoming penalty hearing and the ACCC's pending judgment against Woolworths, which could further reshape discount practices across Australia’s two dominant supermarket chains.