ACCC Coles Federal Court Case: Closing Statements and Judicial Questioning
The Australian Competition and Consumer Commission (ACCC) has presented its final arguments in the Federal Court trial against Coles regarding its "Down Down" pricing promotion. The regulator alleges the supermarket misled customers by briefly raising prices before applying discounts that resulted in prices higher than or equal to the original cost. During the closing stages, the presiding judge questioned the ACCC on the legal threshold required to prove shoppers were actually deceived.
TL;DR
- The ACCC concludes its case alleging Coles used deceptive "Down Down" pricing tactics on hundreds of products.
- The Federal Court judge questioned whether the regulator's case fails if the average shopper understands pricing fluctuations.
- Coles maintains that price increases were driven by genuine inflationary pressures and supplier costs.
- A ruling against Coles could lead to significant financial penalties and changes to retail advertising standards.
What Happened
The ACCC initiated legal action against Coles, claiming the retailer engaged in misleading and deceptive conduct through its popular "Down Down" marketing campaign. The regulator presented evidence showing that prices for numerous household items were increased for a short period—often as little as 22 days—before being reduced. The ACCC argues that these "discounted" prices were frequently higher than the price the item sold for before the initial spike occurred, creating a false sense of savings for consumers.
Key Developments
During the closing statements on February 25, 2026, Justice Michael O'Bryan interrupted the ACCC’s legal team to question the fundamental premise of the case. The judge noted that for the case to succeed, the ACCC must prove that a "reasonable consumer" would interpret the "Down Down" symbol as a discount against a long-term stable price rather than just a decrease from the immediate previous price. Coles' defense team argued that the price movements were necessary responses to inflation and that the supermarket followed its own internal pricing rules until economic conditions made them unsustainable.
Why This Matters
This case is a landmark test of Australian consumer law regarding "was/is" pricing and promotional transparency in the grocery sector. It addresses widespread public concern over the cost of living and the integrity of supermarket pricing strategies. The outcome will define the legal boundaries for how major retailers can market discounts and could result in hundreds of millions of dollars in fines if the court finds the behavior was systemic and intentional.
What Happens Next
The Federal Court trial has now moved into its final stages with closing arguments from both sides being finalized. Following the conclusion of these statements, Justice O'Bryan will reserve his decision to deliberate on the evidence presented. A final judgment is expected later in 2026, which will determine if Coles is liable for civil penalties and if corrective advertising will be mandated.
FAQ
What is the ACCC accusing Coles of doing?
The ACCC alleges that Coles misled consumers by temporarily increasing prices before putting them on "Down Down" promotion. The regulator claims this made shoppers believe they were getting a genuine discount when the final price was actually higher than the original long-term price.
How has Coles responded to the allegations in court?
Coles has denied the allegations, stating that price adjustments were a result of rising costs from suppliers and general inflation. The supermarket argues that its promotional labels accurately reflected a price drop from the most recent price point.
What did the judge ask during the closing statements?
Justice O'Bryan questioned the ACCC on whether a reasonable shopper would actually be misled. He asked if the regulator's case should fail if consumers are generally aware that supermarket prices fluctuate frequently due to various market factors.
What are the possible penalties for Coles?
If found guilty of misleading and deceptive conduct under the Australian Consumer Law, Coles could face significant fines. Current laws allow for penalties per breach that could cumulative reach hundreds of millions of dollars given the scale of the "Down Down" campaign.
When will a final decision be made in the Coles trial?
The judge has not set a specific date for the verdict. After closing statements are completed this week, the court typically takes several months to review the evidence and deliver a written judgment.
