The Australian Competition and Consumer Commission (ACCC) has initiated a significant court case against Coles, one of Australia's major supermarket chains, accusing it of misleading pricing practices. The ACCC asserts that Coles engaged in a deceptive promotional strategy whereby it advertised discounts on at least 245 products that were, in reality, based on inflated prices. According to the regulator, Coles had sold these items at stable prices for a minimum of six months before inflating their cost briefly and subsequently marketing them as discounted under their 'Down Down' promotion. This practice raises questions about the integrity of their pricing strategies and whether they comply with Australian consumer law.

The legal proceedings center around what the ACCC describes as 'illusory' discounts, where the advertised promotion fails to represent a genuine cost reduction. Instead, the prices, under the “was/is” pricing method used by Coles, were often the same or even higher than the prices customers had previously paid. The implications of this case reach far beyond Coles itself, potentially affecting consumer trust across the retail industry and prompting a reevaluation of how promotional pricing is regulated in Australia.

As the trial unfolds, it will serve as a critical test for the ACCC's capacity to enforce consumer protection laws against large corporations. Coles' defense will likely argue the legality and marketing strategies of their promotions, yet the outcome of this case will have significant repercussions for how discounts are presented and perceived in the future, especially in a competitive supermarket landscape where transparency and fairness are paramount.