The Federal Court will deliver its decision this morning on the consumer watchdog’s claim that Coles artificially inflated prices to advertise ‘illusory’ discounts. According to sources from the Sydney Morning Herald and SBS, the judge has ruled in favor of Australia's competition authority, the Australian Competition and Consumer Commission (ACCC).
Justice Michael O'Bryan delivered his judgment on Thursday morning, stating that "I have concluded that 13 of the 14 Down Down tickets were misleading. The relevant products were not sold at the 'was' price stated on the ticket for a reasonable period." This means that the discounts advertised by Coles did not represent genuine savings to customers.
One specific example cited is that of a can of Nature's Gift dog food, which was marked down from $6 to $4.50 under a "Down Down" ticket, but it had actually been priced at $4 for nearly a year before the price increase. This practice has now led Coles into legal trouble.
Coles spokespersons have not commented on the verdict yet, and the supermarket chain will likely face significant financial penalties as well as reputational damage from this case. The ACCC is expected to bring similar charges against Australia's other major supermarket chain, Woolworths, following a similar investigation.
This ruling comes at a critical time for Coles, which has been under scrutiny over its pricing strategies and customer perceptions of value. The decision could have far-reaching implications not only for the company but also for how supermarkets market their products in the future.
This article was produced by AVALW News on Thursday, May 14, 2026 based on reporting from 3 verified news sources. Our editorial process cross-references facts from multiple independent outlets to deliver accurate, comprehensive coverage. All original sources are linked below.