Coles shares fall after losing misleading discounts case against ACCC
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More news: Coles shares slipped in afternoon trade after the Federal Court ruled on Thursday morning that the company had misled shoppers on products labelled with the ‘Down Down’ promotion, with prices higher or the same as previously sold.
Shares in Coles had dropped 3% to $20.50 at 12:19pm AEST.
Coles told the exchange it “acknowledges the decision” of the federal court and noted that price increases were “commercially justifiable” but a minimum price establishment period of 12 weeks was required before promoting it under the Down Down program.
The company also said it is reviewing the judgment.
What they said: “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,” ACCC chair Gina Cass-Gottlieb said.
“We had received complaints by consumers about the ‘Down Down’ discounting claims made by Coles. We understand how important it is for consumers to get value for their supermarket purchases, and decided to take action to test the discounting practices in Court.
“This case has increased transparency and accountability in relation to Coles’ Down Down program.”
Coles misled shoppers on price discounts, Federal Court rules
The news: Supermarket giant Coles misled shoppers with supposed discounts, which were in some cases higher than the price of those products in prior weeks. The case was brought by consumer watchdog ACCC in September 2024.
The context: On Thursday morning, Justice Michael O’Bryan found that Coles had misled shoppers on its pricing for 13 of 14 products labelled under the ‘Down Down’ promotion that were considered in the case.
This was selected from an agreed list of 245 sample products on the promotional program between February 2022 and May 2023.
O’Bryan ruled that the product pricing was misleading because “the relevant products were not sold at the price stated on the ticket for a reasonable period”. This was based on the ‘Down Down’ policy that the previous price was maintained for at least 12 weeks.
The case against Coles was heard in February. The ACCC has also simultaneously brought a similar case against Woolworths, although that was concluded in late April.
Penalties and other orders sought by the consumer watchdog will be considered by the court at a later date.
The source: Federal Court judgment
