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The Guardian - AU

Business

Luca Ittimani

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

Coles Allan Fels Australia Woolworths Jeannie Paterson Michael OBryan Rod Sims ACCC

Coles supermarket — Justice Michael O’Bryan found Coles’ ‘Down Down’ promotions in some cases falsely led customers to believe they were enjoying a true price reduction. Photograph: Hollie Adams/Reuters

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.

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