A Federal Court ruling finds Coles misled shoppers with its Down Down pricing by disguising price increases as discounts through inflated price comparisons.

The ACCC alleged Coles temporarily hiked prices on about 245 products by at least 15% before applying discounts, making the promotions illusory since the promoted prices matched or exceeded prior regular prices.

The court concluded Coles artificially inflated prices to create the appearance of discounts, with the establishing price for the Down Down promotions deemed fake or artificial.

Justice Michael O’Bryan is set to deliver the judgment, with a Melbourne ruling expected on May 14, 2026, from 9:30 AM local time.

The ruling comes amid broader consumer cost pressures and evolving competition among Australia’s major grocers in a challenging macro environment.

The decision carries significant consequences for Coles and could influence Woolworths, as a separate ACCC case against Woolworths is ongoing and awaiting judgment in Sydney.

The case covers promotions from February 2022 to May 2023, with penalties and other orders to be determined later.

ACCC chair Gina Cass-Gottlieb views the win as a crucial validation of the watchdog’s effort to hold supermarkets to account, even as broader excessive-pricing inquiries yield no findings.

ACCC filed the case in 2024 amid heightened scrutiny of supermarket pricing during inflation, alongside a separate action against Woolworths.

No additional details on specific discounts, penalties, or legal reasoning are provided in the excerpt.

The ruling clarifies what constitutes a reasonable discount period and may foreshadow a similar verdict against Woolworths in the parallel ACCC case.

The case involved products across categories, including Coca-Cola, Cadbury chocolates, Colgate toothpaste, and Weet-Bix, illustrating the breadth of items affected.