Landmark Federal Court ruling finds Coles misled shoppers with fake discounts | A Current Affair

They say the customer is always right, and they certainly were in this instance.When Savvy Coles shoppers sniffed some dodgy deals going on at their local supermarket, they called it out.Today, a landmark ruling against the retail giant.The discounts were fake, and a big fine is coming.

I don't have much trust in any of the supermarkets anymore.

We're often amused at the discounts on offer.Will this mob say we'll get away with it?

I don't think I'd ever trust a Coles discount again.It's actually outrageous that these massively profitable companies are doing this in a cost of living crisis.

The Federal Court today has found that Coles Supermarkets Australia has made misleading or false representations.Down, down, slap down for coals.The discounts were illusory and false or misleading in breach of the Australian Consumer Law.

The supermarket giant found by the Federal Court to have deliberately deceived its loyal customers by offering fake discounts, tricking shoppers into thinking they were bagging a bargain.ACCC Chair, Gina Kasgotlib.

The ACCC alleged that calls temporarily increased the price of each product for a relatively short period of time before placing the product on the down -down promotion.It all started when shoppers smelled a rat.

I'm on my way to Coles because I want to show you the price difference between corned beef.

There's an $8 capsicum.Thanks Coles and welcome to Australia.

Spent 84 days at $26 and then three days ago jumped back up to $52.

The consumer watchdog locked in on the scent and hauled the supermarket before the federal court, bringing into question245 household products, which were part of Coles's Down Down campaign.The trial honed in on a handful, including Rexona deodorant, Ardent Shapes, Yopro yogurt, Colgate toothpaste, 2 -litre bottles of Coca -Cola and Caricare baby formula.In the case of the soft drink, in March 2022, the Down Down ticket showed a current price of $3 .50 and a was price of $4 .40, leading customers to believe they were getting a good deal.The judge found that was not genuine and misleading because a month earlier, that same bottle of Coke was $2 .75.Coles bumps the price to $4 .40 for a short time before the price was slashed back to $3 .50.

But in reality, it was a price increase.law -abiding competitors.The fine could potentially be in the hundreds of millions of dollars but will it make any difference to how our supermarkets do business?

You've got to feel that's not competition that's a con.

Brand expert Dee Madigan.

Is this going to hurt Coles?If people start to feel something about Coles that trumps the convenience, then it will actually hurt their bottom line.And a fine is just the cost of doing business.And I don't think it's going to change behaviour.What I think they should do is the same amount of money that they spent advertising those products of being cheaper, they should advertise with a full apology from the CEO in the same spot.And when that money starts to come out of their marketing budget, then they might start paying

They all have the monopoly and the power they can kind of do what they want and we just kind of got to pay it because there's no real other options.

If you don't have competition and you don't have choice you're forced to trust them aren't you?

The landmark case will have a knock -on effect for retailers around the country.The judge found prices need to be held for 12 weeks before a discount is legit.Coles now with a massive cleanup in aisle two.Drawing our attention to the judge who it says also found that all price increases resulted from supplier cost price increases and were therefore commercially justifiable.The other half of Australia's supermarket duopoly, Woolworths, has also been before the court accused of similar tactics in its prices dropped campaign.The Woolies' judgement is coming.

The fact that two billion dollar companies both allegedly arrived at the same strategy suggests it's not a mistake.It's a business model.

Nothing's going to change.We haven't got enough competition.Full stop.The more you find them, they'll just pass it on to the consumers.

It'd be great if Coles did go down down with their prices.That would be great.And tricking your customers wins you no fans.What is interesting from Coles today, there was no apology.Nothing.What's that tell you?

Now we wait to see the size of the fine.The maximum is $50 million per breach and there are 13 of them.We're waiting to see if the supermarket will appeal today's decision.It says it's currently reviewing the judgment.Well, next up will be Woolley's turn.