The Federal Court has found that Coles Supermarkets Australia made false or misleading representations about ‘Down Down’ discounts, in proceedings brought by the ACCC.

The proceedings related to 245 common products sold by Coles. The ACCC alleged that Coles temporarily increased the price of each product by at least 15 per cent for a relatively short period of time, before placing it on a ‘Down Down’ promotion at a price that was still higher than, or the same as, the price it had previously sold for before the price increase.

The ACCC alleged that the discounts were illusory and that the representations were false or misleading, in breach of the Australian Consumer Law.

The hearing involved an agreed list of sample products from the total of 245. The Court found that Coles made misleading representations in 13 of the 14 ‘Down Down’ tickets that were considered in the liability hearing.

“We welcome the Court’s finding that Coles breached the Australian Consumer Law,” ACCC Chair Gina Cass-Gottlieb said.

“The ACCC brought this case in the public interest because we considered that Coles’ pricing practices within its ‘Down Down’ program made it harder for customers to identify genuine value for money while shopping for household essentials.

“We had received complaints by consumers about the ‘Down Down’ discounting claims made by Coles. We understand how important it is for consumers to get value for their supermarket purchases, and decided to take action to test the discounting practices in Court,” Ms Cass-Gottlieb said. 

“This case has increased transparency and accountability in relation to Coles’ Down Down program.”

The Court will determine penalties and other orders sought by the ACCC at a later date.

Coles Group Limited has acknowledged the decision of the Federal Court of Australia in these proceedings. The Court found that all price increases resulted from supplier cost price increases and were, therefore, commercially justifiable.

“However, the Court found that, after a cost price increase, a minimum price establishment period of 12 weeks was required before promoting products on its Down Down program. As a result, the Court found the Down Down tickets were misleading.”

Coles is reviewing the judgement.

GMP Law welcomes the decision of the Federal Court of Australia finding that Coles Supermarkets Australia Pty Ltd engaged in false or misleading conduct in relation to its ‘Down Down’ pricing promotions, in proceedings brought by the Australian Competition and Consumer Commission (ACCC).

The ACCC proceeding concerns regulatory penalties only. It does not provide compensation to consumers who purchased the affected products.

Compensation remains the focus of the class action brought by GMP Law on behalf of lead applicant Benjamin Glenn Demery and group members. The class action was aligned with the ACCC proceeding to streamline the determination of common liability issues and reduce duplication and costs for the Court and the parties.

The GMP Law class action concerns 255 affected products and seeks compensation for consumers who shopped at Coles, either in-store or online, between February 2022 and May 2023.

GMP Law Chairperson Gerard Malouf said: “This is a wonderful result for members and vindication for the everyday Australian who deserves clarity and honesty in pricing of products. Ultimately, we’ll have a situation where we’ll be able to refund group members significant sums of money depending on their purchases over the period in question.

“Clearly the promotions were misleading and there wasn’t clarity and transparency about the manner and approach undertaken by these major food market groups. This is not just a win for supermarket patrons, but a significant win for all consumers in Australia in the future, as clear and unequivocally transparent pricing practices must be maintained.”

The ACCC’s Supermarkets Inquiry, finalised in February 2025, found that Coles and Woolworths account for 67% of national supermarket retail sales. The Inquiry also found that the price of a typical basket of groceries had increased by more than 20% over the previous five years. It recommended that supermarkets publish clearer and more accurate pricing information.

The opt-out deadline for the GMP Law class action passed on 21 November 2025. The proceeding continues on behalf of registered group members and consumers who did not opt out. GMP Law will provide further updates on next steps in the compensation proceeding in the coming weeks.

CHOICE welcomes the Federal Court’s judgement in the ACCC’s case against Coles regarding ‘Down Down’ promotions.

CHOICE Director of Campaigns Andy Kelly said: “While the judgement is good news to hold supermarkets accountable for clear, transparent pricing – it reinforces the need for stronger pricing reforms. At a time when many households are facing cost of living pressures, it’s more important than ever for consumers to be able to trust that promotions reflect genuine discounts. Hiking prices whilst telling consumers that prices are down has allowed Coles to have its cake and eat it too.

 “The Nature’s Gift dog food ‘Down Down’ promotion was found not to be misleading as the tag did not include a ‘was’ price, despite having only been sold at a higher price for one week. Without requiring supermarkets to publish the previous price of the product, supermarkets could potentially remove the ‘was’ price and continue to engage in similar conduct.

 “We continue to call on the Federal Government to implement the ACCC supermarkets inquiry recommendations in full, by introducing minimum information requirements for price displays and discount promotions, including the previous price of the product, the date range over which that previous price applied, and the percentage of the discount,” said Ms Kelly.