Coles Found Liable for Misleading 'Down Down' Price Promotions
Coles was found by the Federal Court to have misled consumers with false discount claims.
Why it matters: The ruling spotlights regulatory risk for retailers using discounts and promotions, making clear that marketing practices must align with consumer law or expose companies to enforcement actions. Legal and compliance teams must ensure accuracy and transparency in consumer advertising to avoid similar legal outcomes.
- On 14 May 2026, the Federal Court ruled Coles misled consumers in its 'Down Down' campaign.
- The ACCC alleged Coles' price promotions covered 245 products between February 2022 and May 2023.
- Coles had increased prices by at least 15% before discounting or promoting them as 'Down Down'.
- Misleading representations were found in 13 of 14 examined price tickets.
The Federal Court of Australia has found that Coles Supermarkets engaged in misleading or false advertising during its 'Down Down' pricing promotion, following an action brought by the Australian Competition and Consumer Commission (ACCC).
- The court found Coles had increased the price of certain products by at least 15% before promoting them as discounted, meaning the 'Down Down' price was often higher than or the same as the original price.
- Proceedings began after consumer complaints, leading the ACCC to investigate the pricing of 245 products sold between February 2022 and May 2023.
- “We welcome the Court’s finding that Coles breached the Australian Consumer Law,” said ACCC Chair Gina Cass-Gottlieb. She noted the case was brought in the public interest to protect shoppers from misleading discounting claims.
- Coles operates over 840 locations across Australia, making this a significant ruling for retail compliance nationwide.
- Of 14 'Down Down' tickets examined at trial, 13 were found to have contained misleading representations.
The Court’s decision emphasizes that marketing strategies, including promotional pricing, require careful legal vetting to avoid consumer law breaches and reputational harm. The penalties or specific orders in this case are still to be determined.
Corporate legal departments are urged to review their promotional review processes to ensure compliance in all consumer-facing claims. The judgment serves as a clear warning amid growing enforcement action by regulators such as the ACCC.
By the numbers:
- 245 — Number of products involved in the ACCC's allegations against Coles
- 15% — Minimum price increase by Coles prior to 'Down Down' promotions
- 840+ — Coles' stores operating nationwide
Yes, but: Details on penalties or remedial actions from the Court are pending.
What's next: The Court will determine penalties or further orders against Coles at a later date.