An Australian federal court has ruled that supermarket giant Coles misled shoppers by advertising fake discounts through its well-known 'Down Down' promotion. Justice Michael O'Bryan found that 13 out of 14 sample products did not represent genuine savings, as prices were not maintained at the 'was' price for a minimum of 12 weeks.
Key Takeaways
An Australian federal court ruled that Coles misled shoppers by advertising fake discounts through its 'Down Down' promotion. Justice Michael O'Bryan found that 13 out of 14 sample products did not represent genuine savings, as prices were not maintained at the 'was' price for a minimum of 12 weeks.
- Court rules Coles misled shoppers with fake discounts
- 13 out of 14 sample products found to be misleading
- Discounts required at least 12 weeks at 'was' price to be genuine
- ACCC seeks substantial penalties and clearer guidelines for the industry
According to The Guardian, the court case revealed how Coles tampered with its internal 'guardrails' in late 2021 and early 2022, reducing the required period for maintaining the 'was' price from 12 weeks to just four weeks. This change was driven by price increase requests from suppliers and competitive pressure from rival Woolworths.
The Australian Competition and Consumer Commission (ACCC) had sued Coles over its promotional practices, arguing that the supermarket temporarily raised prices before advertising discounts. The court agreed, with Justice O'Bryan stating that 'The Down Down tickets for the sample products would not have been misleading if the products had been sold at the “was” price for a minimum period of 12 weeks immediately preceding the “Down Down” promotion.'
Coles has said it is reviewing the judgment and considering its next steps. The ruling could result in significant penalties for Coles, with the ACCC seeking substantial fines to deter similar conduct in the future. The case also raises questions about whether 12 weeks will become a standard timeframe for establishing 'was' prices in the broader industry.
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