The Australian Competition and Consumer Commission is taking legal action against Coles over allegedly illusory discounts labeled as “down down,” accusing Coles of inflating prices and then advertising non-genuine reductions.

ACCC’s case relies on pricing data from 255 products over 15 months, including a dog food example where Nature’s Gift Wet Dog Food rose to a higher price for seven days and then dropped to a lower price marketed as a discount.

The action is part of a broader ACCC initiative launched in 2024 to re-examine Coles’ pricing practices and potentially set a precedent for consumer protection against misleading discounting.

The hearing will run for 10 days in the Federal Court in Melbourne, before Justice Michael O’Bryan, and proceedings will be streamed on the court’s YouTube channel.

The coverage also notes related items in the live update, including wildlife rescue efforts, IMF commentary on Australia’s inflation path, budget costings, and Australia’s Olympic alpine performance.

The report, authored by Carrie LaFrenz and Max Mason for the Australian Financial Review, centers on a high-profile regulatory dispute in the grocery sector.

The 10-day hearing will examine pricing across multiple products, from instant coffee to chocolate biscuits.

The case unfolds amid inflationary pressure in groceries, with Woolworths facing a related but separate action expected later.

A ruling could influence how supermarkets price and advertise discounts across the industry, potentially affecting Woolworths’ case as well.

Further details on the court proceedings, specific allegations, and remedies or penalties were not included in the excerpt.

Twelve key products, including Karicare formula, Arnott’s Shapes, and a Danone yoghurt tub, are highlighted to illustrate the broader conduct under scrutiny.

Coles’ leadership and counsel, including CEO Leah Weckert and Barrister John Sheahan KC for Coles, are central to the high-profile legal battle as scrutiny of value for shoppers grows.