ACCC Files Federal Court Action Against Coles Over 'Down Down' Promotions
The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings in the Federal Court against Coles Supermarkets Australia Pty Ltd. The consumer watchdog alleges that Coles engaged in misleading or deceptive conduct concerning its widely advertised 'Down Down' price promotions.
Allegations of Misleading Price Representations
The ACCC contends that, for a significant number of products, Coles promoted items as being on 'Down Down' specials when the prices were not genuinely reduced for a meaningful period. The regulator asserts that, in many instances, the products were sold at the so-called 'discounted' price for the majority of the time they were available for sale, or the 'higher' comparison price was not a genuine prevailing market price.
This alleged conduct, if proven, could constitute a breach of Australian Consumer Law, which prohibits businesses from making false or misleading representations about the price of goods and services.
Scope and Impact of the Alleged Conduct
The court action focuses on 'Down Down' promotions for a range of grocery products, including meat, seafood, dairy, and pantry items, advertised in Coles stores and online between late 2023 and early 2025. The ACCC argues that the promotions created a false impression of urgency and value, potentially influencing the purchasing decisions of countless Australian shoppers.
"Consumers should be able to trust that advertised specials represent genuine savings," a spokesperson for the ACCC stated. "When a major retailer like Coles uses campaigns like 'Down Down', it must ensure the price comparisons are accurate and not misleading."
Potential Consequences and Coles' Response
The ACCC is seeking declarations, pecuniary penalties, injunctions, corrective notices, and costs from the Federal Court. Penalties for breaches of the consumer law can be substantial, calculated as the greater of a fixed sum or a multiple of the benefit obtained from the conduct.
In response to the allegations, a Coles spokesperson said, "We are reviewing the details of the ACCC's claim and will be defending the matter. Our 'Down Down' campaign is designed to highlight low prices that are locked in for value, and we believe our advertising has been clear and compliant with the law."
The case highlights ongoing regulatory scrutiny of pricing practices in the highly competitive Australian supermarket sector, following previous actions and inquiries into the conduct of major grocery chains.
