Australia court rules Coles misled shoppers on discount pricing
Synopsis
The Federal Court ruling against Coles over misleading discount pricing comes as grocery affordability and supermarket competition remain major public issues. The ACCC case examined 245 products promoted through “Down Down” campaigns and adds pressure on large supermarket chains already facing scrutiny over pricing transparency and consumer trust.
Federal Court ruled Coles misled shoppers through discount promotions. The ACCC case comes amid broader scrutiny of supermarket pricing, grocery inflation and competition across major retail markets.
Key Highlights
- Federal Court ruled Coles misled shoppers through parts of its “Down Down” pricing campaign.
- ACCC case covered 245 grocery products promoted between 2022 and 2023.
- Grocery prices remain under pressure as regulators increase scrutiny on supermarket pricing practices.
- Coles reported A$44.4 billion revenue during the 2025 financial year.
Australia’s Federal Court has ruled that Coles misled shoppers through parts of its “Down Down” pricing campaign, handing the consumer regulator a major win at a time when grocery prices remain under close public scrutiny.
The ruling follows legal action from the Australian Competition and Consumer Commission, which argued Coles raised prices on some products before later advertising them as discounted. Justice Michael O’Bryan found 13 of 14 promotions examined in court breached consumer law.
The case covered 245 grocery products sold between February 2022 and May 2023. Penalties against Coles will be decided during a later court hearing.
Grocery Prices Stay a Consumer Flashpoint
The Coles pricing ruling arrives as supermarket costs continue to dominate household spending concerns. Food prices in Australia rose 3.3% annually in the March 2026 quarter, according to the Australian Bureau of Statistics, although inflation has eased from earlier peaks.
The ACCC’s final supermarkets inquiry report, released earlier this year, said Coles and Woolworths continue to hold strong control over the grocery sector, limiting competition in several regions. The regulator said Australia’s supermarket market remains more concentrated than comparable markets, including Britain, Germany and the United States.
Industry estimates place Woolworths’ grocery market share near 37%, while Coles holds roughly 28%. Aldi has continued expanding but remains below 11% nationally.
Pricing Practices Under Wider Spotlight
The court ruling also lands as global retailers face closer attention over pricing transparency and promotional tactics. In recent years, regulators in Britain, Europe and North America have increased scrutiny of supermarket discounts and loyalty pricing programs during periods of high inflation.
The ACCC argued shoppers relied on “Down Down” labels to identify genuine savings during a period of rising living costs. The court said some advertised price drops did not reflect meaningful long-term reductions.
Coles said it acknowledged the judgment and was reviewing the decision.
According to the company’s latest annual results, Coles reported A$44.4 billion in revenue in FY2025 and operates around 860 supermarkets nationwide.
FAQs
Q1. Why did the court rule against Coles?
The court found some Coles discount promotions gave misleading impressions about genuine customer savings on grocery products.
Q2. What products were examined in the ACCC case?
The case involved 245 grocery products promoted through Coles “Down Down” pricing campaigns between 2022 and 2023.
Q3. Why is the Coles ruling significant now?
The ruling comes during ongoing public concern about grocery inflation, supermarket pricing and competition in the retail sector.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
