“Utterly Misleading”: ACCC Accuses Coles of “Planned” Fake Discount Campaign in Landmark 2026 Trial

Australia’s consumer protection authority, the Australian Competition and Consumer Commission (ACCC), has opened a major Federal Court case against supermarket chain Coles, accusing the company of systematically misleading shoppers through its long-running “Down Down” discount campaign.

The trial began with opening arguments focusing on pricing practices for more than 200 everyday household products. ACCC lawyers told the court that Coles would temporarily raise prices on items before advertising them as reduced under the “Down Down” label – even when the promotional price was identical to, or higher than, the normal selling price over the preceding months.

Allegations of Deceptive Pricing

The ACCC described the practice as a deliberate strategy to create the illusion of savings. They argued that customers were repeatedly misled into believing they were getting a genuine discount when, in reality, they were not. The watchdog’s counsel highlighted internal Coles documents showing policy changes that allowed promotions previously prohibited under earlier guidelines, claiming these shifts were driven by competition with Woolworths rather than genuine price reductions.

The Nature’s Gift Case Study:

• Historical Price: For nearly 300 days (April 2022 – February 2023), the product sold for $4.

• Price Hike: Increased to $6 for just seven days.

• “Discounted” Price: Promoted as “Down Down” at $4.50 – 13% higher than the long-term price.

The ACCC argued this was deceptive because the temporary $6 price was not disclosed, leading shoppers to assume $4.50 was a real reduction.

Coles’ Defense

Justice Michael O’Bryan questioned aspects of the ACCC’s position, suggesting the earlier $4 price might no longer be relevant after cost increases, and that reasonable shoppers understand inflation drives prices upward. Coles rejected the claims through barrister John Sheahan KC, arguing that customers shop in an environment of rising prices and are well aware of inflation. Sheahan said the promotions were standard practice in such conditions and that ordinary shoppers are more attuned to price changes than the court might assume.

Timeline of the ACCC vs Coles Case

The legal battle has developed over several years:

• 2010–2020s: “Down Down” campaign runs continuously since 2010.

• 2022–2023: ACCC begins investigating pricing practices amid public complaints.

• Early 2024: ACCC formally announces it is examining Coles and Woolworths.

• Mid-2025: ACCC issues detailed concerns to Coles about specific products.

• Late 2025: ACCC files Federal Court proceedings against Coles.

• February 2026: Trial opens with opening arguments.

The outcome could set important precedents for how supermarkets advertise discounts and influence consumer protection standards across Australia’s retail sector.