Coles “Down Down” Promotion Accused of Being Misleading

The Australian Competition and Consumer Commission (ACCC) has accused major supermarket chain Coles of allegedly breaching Australian consumer protection laws between February 2022 and May 2023 through its well-known “Down Down, prices are down” promotional campaign.

In opening arguments on Monday (February 16), ACCC lawyers argued that the “price up, then down” strategy used familiar slogans and promotional labels to give customers the impression that prices were falling long-term, while concealing prior price increases. Prosecutors cited a 1.2 kg can of dog food as an example: it had been sold at $4 for most of the year, briefly increased to $6, and was then promoted as discounted at $4.50. Although the promotional wording was technically accurate, it did not disclose that the price had previously been raised, potentially misleading ordinary consumers about the product’s pricing history.

The ACCC has also brought similar allegations against another major supermarket chain, Woolworths, claiming its “Prices Dropped” campaign followed comparable practices. Coles strongly denies the accusations, arguing that price changes were largely driven by rising supply chain costs and inflationary pressures. It maintains that the “Down Down” adjustments reflected market realities and preserved product value rather than intentionally misleading customers. Defense lawyers argued that consumers assess products based on current prices at the time of purchase, not historical price labels, and therefore the conduct should not be considered misleading.