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Coles accused of ‘utterly misleading’ discounts as major court case kicks off

The Australian Competition and Consumer Commission alleges Coles misled shoppers with fake discounts on 245 products by temporarily raising prices before 'Down Down' promotions.

  • On February 16, 2026 the Australian Competition and Consumer Commission began a Federal Court case alleging Coles misled customers with its Down Down campaign on 245 products.
  • ACCC alleges Coles briefly spiked prices to an establishing price then offered a Down Down discount, while Coles says supplier cost increases and mid-2021 to 2023 inflation forced retail price rises.
  • Court documents included price histories for Shapes biscuits and Karicare baby formula, while Garry Rich SC opened with Nature's Gift 1.2kg wet dog food showing $4, a $6 spike for seven days, then a $4.50 Down Down sale.
  • If proven, the ACCC seeks declarations and financial penalties against Coles, citing tens of millions of allegedly discounted goods that affected millions of consumers and hundreds of stores nationwide.
  • Woolworths also faces related allegations and a separate case is scheduled later this year, while internal Coles emails and Down Down TV ads were submitted as evidence on Monday.
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Sydney Morning Herald broke the news in Sydney, Australia on Sunday, February 15, 2026.
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