Have you ever grabbed an item off the supermarket shelf because of a flashy “SALE!” sign, only to wonder later if you actually saved any money? Well, if you shop at Coles in Australia, your suspicions might have been spot on.
In a landmark decision, the Australian federal court has officially ruled that the supermarket giant misled its customers with fake discounts.
Here is a breakdown of what happened and why it matters for your wallet.
The “Down Down” Deception
For years, Coles has heavily promoted its “Down Down” campaign, promising shoppers long-term price drops on hundreds of everyday items. However, the country’s consumer watchdog wasn’t convinced that these deals were as good as they looked. They took Coles to court, arguing that these promotions were actually tricking everyday consumers.
How the Pricing Trick Worked
So, how did they make a regular price look like a massive discount? The court found that the supermarket was using a sneaky, multi-step tactic:
- Step 1: The Price Hike: Coles would temporarily raise the price of a product.
- Step 2: The “Discount”: Shortly after, they would drop the price back down.
- Step 3: The Promotion: They would then slap a bright “Down Down” promotional sticker on the item, making it look like a brand-new, massive saving when, in reality, it wasn’t a genuine discount at all.
The Court’s Verdict
Justice Michael O’Bryan didn’t mince words. On Thursday, he agreed with the consumer watchdog and ruled that these advertised discounts were “not genuine.” By briefly hiking prices just to lower them again, Coles created an illusion of savings, which directly misled shoppers. Because of this ruling, the supermarket giant could be facing some massive financial penalties.
What Does Coles Have to Say?
Coles originally rejected the allegations when the lawsuit was filed. Following the judge’s ruling, the company stated that it is currently reviewing the judgment. They also released a statement claiming that their main priority “has always been… delivering value to our customers.”
