HomeAUColes' 'Down Down' Prices Misleading Shoppers: Court Case Unveils the Truth

Coles’ ‘Down Down’ Prices Misleading Shoppers: Court Case Unveils the Truth

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A supermarket giant effectively misled shoppers with a catchy slogan that was “not just some meaningless phrase”, a court has heard.
In its closing submissions to the Federal Court, the Australian Competition and Consumer Commission (ACCC) argued Coles intentionally duped customers with its “down down” campaign, first launched in 2010.
Garry Rich SC, for the commission, said the campaign was a tactic to deceive consumers that prices on thousands of products were falling when in fact they were going up overall.
Coles has been accused of faking many of its discounts in Federal Court.
Coles has been accused of faking many of its discounts in Federal Court. (A Current Affair)

Rich highlighted a case where the cost of a Coles-brand quince paste rose from $3 to $4.50 for a brief period of four weeks, only to drop to $3.15 afterward.

He contended that a four-week duration was insufficient for $4.50 to be genuinely regarded as the regular price.

“When consumers hear ‘down down,’ they don’t perceive it as a meaningless slogan,” he explained to Justice Michael O’Bryan.

“They assume it implies that the product’s price has decreased,” he added.

In court, Coles defended its pricing campaign, asserting that customers recognized them as genuine price cuts.

The retail giant argued its “down down” prices were genuine discounts for shoppers after an increase in wholesale costs during a post-COVID inflation surge.

In his summary, Rich painted a picture of the average consumer, saying that grocery shopping was a chore for most.

“There must be very few people who shop for groceries for fun,” he said.

supermarket signs to watch out for jo abi supermarket sleuths
Rich painted a picture of the average consumer, saying that grocery shopping was a chore for most. (Nine)

Customers were often in a hurry, shopping for many different products on the same visit, Rich added.

“Many are travelling through the aisles of Coles with children in tow, perhaps hanging off the trolley begging for ice cream,” he said.

“They see a big red and white ticket and read that the price is ‘down down’ … many of them will have no idea that the price was actually lower four weeks ago.”

Justice O’Bryan queried whether time-poor consumers might take the meaning of “down down” to be simply a generic statement for prices as a whole.

But Rich countered by saying that “down down” immediately implied that there used to be a higher price.

Competitive pressures between Coles and Woolworths had created an ethical race to the bottom between the supermarket duopoly, he said.

“The better standard, if one is going to use Coles’ standards as a guide, is what did they think was appropriate in circumstances where they weren’t fighting tooth and nail with Woolworths, where they weren’t concerned that Woolworths had thrown out the rule book,” he said.

The commission alleges the supermarket giant deliberately raised prices on thousands of everyday items before offering discounts at prices higher than or equal to the original shelf price throughout a period of 15 months.

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