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Coles: Australian Supermarket Giant Misled Consumers with Fake Discounts, Court Rules
On Thursday, Federal Court Justice Michael O'Bryan ruled that Coles misled customers through its 'Down Down' pricing campaign, upholding allegations from the Australian Competition and Consumer Commission .
The ACCC alleged Coles briefly spiked prices for four weeks before advertising them as discounts, misleading consumers about genuine value on common household products.
Of the 14 sample products, Justice O'Bryan found 13 had been sold in a misleading manner, with Nature's Gift Wet Dog Food priced at $4 before being raised and discounted.
Coles faces potential significant penalties following the decision, which establishes precedent for similar pending litigation against rival supermarket chain Woolworths.
Legal proceedings return to court on June 10 to determine penalties after Justice O'Bryan rejected Coles' defense that price increases were commercially justifiable.