Federal court rules Coles misled shoppers on discounts

A federal court ruled that Coles misled shoppers by advertising discounts that did not reflect actual price reductions. The Australian consumer watchdog initiated legal action against the supermarket chain in 2024. The court determined that Coles placed commercial interests above customer information when it promoted the discounts.

Court findings The judgment examined how Coles presented price comparisons to customers. Court documents showed that the advertised discounts did not match the prices customers actually paid. Business editor Jonathan Barrett discussed the decision with Nour Haydar. He explained the basis for the court's conclusion that consumers were misled.

Implications for retailers The ruling applies to Australia's second-largest supermarket chain. Other retailers now face increased scrutiny over similar pricing practices. The decision does not specify whether prices at the checkout will change. It focuses on the accuracy of discount advertising rather than price levels.