Australian retailers on notice over ‘fake discounts’ as Coles braces for record fine after landmark court ruling

Supermarket share price falls after ‘Down Down’ discounts ruled to be misleading as Woolworths defends similar case Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast Coles’ landmark federal court loss could signal the end of “fake discounts” in Australia, according to two former competition watchdog chiefs, with the supermarket giant at risk of record fines exceeding $200m. The Australian Competition and Consumer Commission sued Coles and its rival Woolworths, accusing the supermarket giants of duping shoppers between 2021 and 2023 with “was/is” promotional pricing. Justice Michael O’Bryan on Thursday found Coles’ “Down Down” promotions in some cases falsely led customers to believe they were enjoying a true price reduction. All Australian retailers have been left on notice to keep their “discounts” genuine, according to Rod Sims, the former head of the consumer watchdog. “If you’re suggesting there’s a discount, then it really better be a discount,” Sims said. “This is going to have wider implications for all companies … They really need to be sure that what they’re offering co