Watchdog seeks big penalty after Coles goes 'Down Down'

Coles deliberately disguised price hikes as discounts under its "Down Down" campaign, a judge says. (Diego Fedele/AAP PHOTOS)

A landmark ruling that Coles misled shoppers through illusory discounts sends a clear message about the need to place shoppers' understanding above competition tactics, the consumer watchdog says.

Coles deliberately disguised price hikes as discounts under its "Down Down" price campaign, Federal Court judge Michael O'Bryan found on Thursday.