ACCC Sues Coles Over Misleading Down Down Prices

The Australian Competition and Consumer Commission has launched legal proceedings against supermarket chain Coles in the Federal Court, alleging the company misled customers through its long-running "Down Down" pricing campaign by artificially inflating prices before offering purported discounts. The hearing began on Monday in Melbourne and is expected to last 10 days.

The ACCC claims that between February 2022 and May 2023, Coles engaged in misleading conduct with 245 products, including everyday items such as toothpaste, soft drinks, cheese, shampoo, Band-Aids, and laundry powder. According to the regulator, Coles raised prices temporarily to create a higher baseline, then promoted reductions from that elevated level, even though the discounted price was often the same as or higher than the previous regular price. This occurred during a period of high inflation and rising wholesale costs, when consumers were particularly sensitive to grocery expenses.

In opening arguments, ACCC barrister Garry Rich SC highlighted the case of a 1.2kg can of Natures Gift wet dog food. Sold for $4 from April 2022 until early February 2023, the price jumped to $6 for just seven days before...