Australia

Australia: Coles Found Guilty of Misleading 'Down Down' Discounts

Was this a fake discount scam on shoppers or simply price adjustment due to real supplier cost increases?

Published 5 days ago

Australia: Coles Found Guilty of Misleading 'Down Down' Discounts

Story

Above: A Coles supermarket in Perth, Australia, in July 2010. Image credit: Tony Ashby/Bloomberg/Getty Images

The Spin

Left narrative

Coles got caught running a discount scam on everyday essentials, and the Federal Court confirmed it. The supermarket giant jacked up prices on 245 products by at least 15 percent, then slapped a 'Down Down' label on them at prices still higher than before — making the savings completely fake. Shoppers deserve honest pricing, and this ruling makes clear that misleading discount tactics violate Australian Consumer Law.

Australian Competition and Consumer Commission

Right narrative

The court itself acknowledged Coles raised prices for legitimate, commercially justifiable reasons tied to real supplier cost increases — that's the opposite of predatory behavior. Framing routine cost adjustments as a consumer scam ignores the economic reality that retailers face genuine input pressures. Punishing a business for responding to supplier costs sets a dangerous precedent that misreads how grocery pricing actually works.

Toby Eggleston on X