ACCC takes legal action against Coles for alleged misleading pricing claims

The Australian Competition & Consumer Commission (ACCC) has initiated legal proceedings against Coles Supermarkets Australia Pty Ltd (Coles) (ASX:COL) for allegedly breaching the Australian Consumer Law. The ACCC alleges that Coles misled consumers through discount pricing claims on 245 common supermarket products, with prices being higher than or the same as the regular prices before the promotions.

ACCC Chair's statement on Coles' alleged misleading pricing claims

ACCC Chair Gina Cass-Gottlieb stated, 'We allege that Coles breached the Australian Consumer Law by making misleading claims about discounts, when the discounts were, in fact, illusory. This conduct diminished the ability of consumers to make informed choices about what products to buy, and where.'

Summary of Coles' alleged conduct and ACCC's response

The ACCC alleges that Coles offered 245 products at regular prices for at least 180 days, then increased the prices by at least 15% for a short period before placing them on the 'Down Down' program. The ACCC claims that the display of 'Down Down' tickets was misleading, as the prices were higher than or the same as the regular prices. Coles faces legal action seeking declarations, penalties, costs, and community service orders to fund meal deliveries to Australians in need. The ACCC's inquiry into the supermarket sector will not consider the issues in dispute in these proceedings.