The Australian Competition and Consumer Commission has launched a high-stakes legal battle against Coles (ASX:COL) in the Federal Court, alleging the supermarket giant engaged in "utterly misleading" conduct during its iconic "Down Down" discount campaign.
Between February 2022 and May 2023, the watchdog claims Coles artificially inflated the prices of 245 products for brief periods—often less than a month—before "dropping" them to a price that was still higher than or equal to the original long-term cost.
During the trial's opening in Melbourne, ACCC barrister Garry Rich SC presented evidence of "price spiking," highlighting a 1.2kg container of dog food that sat at $4 for nearly a year.
The price was hiked to $6 for a mere seven days before being advertised as a "Down Down" bargain at $4.50.