ACCC takes coles to court over ‘down down’ discounts as shoppers demand truth on grocery prices

Watchdog alleges supermarket giant ran misleading price-drop campaign; Coles denies wrongdoings. Australia’s consumer watchdog has launched one of the most closely watched legal battles in the country’s retail history, accusing supermarket giant Coles of misleading shoppers through its iconic “Down Down, Prices are Down” promotions. The Australian Competition and Consumer Commission (ACCC) has begun Federal Court proceedings, alleging Coles engaged in a deliberate strategy of temporarily increasing prices on hundreds of everyday items before advertising them as discounted  leaving consumers

  Watchdog alleges supermarket giant ran misleading price-drop campaign; Coles denies wrongdoings. Australia’s consumer watchdog has launched one of the most closely watched legal battles in the country’s retail history, accusing supermarket giant Coles of misleading shoppers through its iconic “Down Down, Prices are Down” promotions. The Australian Competition and Consumer Commission (ACCC) has begun Federal Court proceedings, alleging Coles engaged in a deliberate strategy of temporarily increasing prices on hundreds of everyday items before advertising them as discounted  leaving consumers with savings that were, in many cases, illusory.

Pictures showing discount mark at the market

The case comes at a moment of intense public anger over grocery costs, and could reshape how supermarkets promote prices nationwide.

A Campaign Under Fire

In court on Monday, the ACCC described Coles’ conduct as “utterly misleading”, arguing it formed part of a planned promotional campaign designed to create the impression of falling prices. The regulator alleges that between 2022 and 2023, Coles increased the shelf prices of at least 245 common products  including dog food, cheese, paper towels and snacks by 15% or more for short periods, sometimes lasting only days or weeks. Soon after, those items were placed under the familiar “Down Down” signage, marketed as discounted despite the so-called reduced price often being the same as, or higher than, the original regular price. The ACCC argues this practice distorted consumer decision-making at the checkout.   One product highlighted in the proceedings involved a tin of dog food that had been priced at $4, before rising to $4.50 for one week, then being advertised as “Down Down” when it returned to its earlier level. To shoppers, the label suggested a bargain. To regulators, it suggested something else: a discount that wasn’t real.

Coles Rejects the Allegations

Coles has denied any wrongdoing, insisting the price changes were driven by external pressures rather than deception. The company argues that cost increases from suppliers  particularly during inflationary shocks  forced temporary adjustments, and that promotions were introduced to provide value when possible. Coles’ defence rests on the claim that these were legitimate commercial responses, not a scheme to manipulate consumers.

Millions of Shoppers Watching Closely

The trial is expected to run for several weeks, with potentially massive consequences. If the court finds Coles breached Australian Consumer Law, penalties could reach tens of millions of dollars, alongside compliance orders and stricter promotional oversight. Legal experts say the case may set a precedent for how supermarkets can advertise price drops in an era where consumers are increasingly sensitive to cost-of-living pressures.

A Wider Supermarket Crackdown

The Coles case is not happening in isolation. The ACCC is also pursuing rival retailer Woolworths over similar allegations involving its “Prices Dropped” promotions, signalling a broader regulatory push against misleading discount tactics in Australia’s dominant grocery duopoly. With Coles and Woolworths controlling much of the supermarket sector, critics argue shoppers have limited alternatives — making transparency in pricing even more critical.

Public Outrage and Viral Reaction

The case has struck a nerve nationwide. Australians, already frustrated by rising grocery bills, have flooded social media with reactions ranging from vindication to anger, with comments such as “About damn time” and renewed calls for tougher scrutiny of major retailers.

Showing dog food price reduction in the supermarket ACCC

For many households, the proceedings feel like more than a courtroom dispute — they feel like accountability for years of checkout pressure.

What Comes Next

The Federal Court will now examine whether Coles’ promotional strategy crossed the legal line between marketing and misinformation. For shoppers, the outcome could determine whether supermarket discounts can be trusted or whether the country’s biggest retailers will be forced into a new era of pricing transparency.