Australian supermarket giant Coles ‘Down Down’ promotions misled consumers, court rules

The court said some prices were raised before being discounted.

The Federal Court has ruled that Coles Supermarkets Australia made false or misleading representations in relation to its “Down Down” discount campaign, in a case brought by the Australian Competition and Consumer Commission (ACCC).

The case concerned 245 common household products sold by Coles between February 2022 and May 2023. The ACCC alleged that Coles temporarily increased prices on certain items by at least 15% for a short period, before placing them on “Down Down” promotions that still resulted in prices equal to or higher than their original levels.

The regulator argued the discounts were therefore illusory and misleading under the Australian Consumer Law.
In its liability judgment, the Court examined an agreed sample of 14 “Down Down” price tickets and found that 13 of them involved misleading representations.

“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,” said ACCC Chair Gina Cass-Gottlieb said.

She said the regulator acted after receiving consumer complaints and concerns that Coles’ promotional strategy made it harder for shoppers to identify genuine value on everyday essentials.

“This case has increased transparency and accountability in relation to Coles’ Down Down program,” she said.

The broader investigation covered a wide range of household brands including biscuits, dairy products, toiletries, cleaning goods, beverages, and baby formula. The liability hearing focused on a smaller agreed sample of 12 products, with some items assessed multiple times under the promotion.

The court has not yet determined penalties or other orders, which will be decided at a later stage.

The ACCC initiated proceedings against Coles in September 2024, alleging misleading pricing conduct across hundreds of products during a 15-month period.

Coles is Australia’s second-largest supermarket chain, operating more than 840 stores nationwide. Its “Down Down” program, launched in 2010, has been promoted as a way to deliver sustained price reductions on frequently purchased household goods.

The ACCC has also brought separate proceedings against Woolworths Group Limited over similar allegations. That case remains before the Federal Court, with judgment reserved.