Australia's competition watchdog has dragged Coles into federal court over what it calls systematic customer rip-offs through fake discounts—a bombshell case that could force the supermarket duopoly to fundamentally change how it prices products.
The Australian Competition and Consumer Commission alleges Coles deliberately misled customers with "illusory" discount promotions on thousands of products, including household staples like Arnott's Shapes. The ACCC claims the supermarket giant raised prices briefly, then dropped them back to near-original levels while advertising them as special deals.
If Coles loses, it faces massive fines that could run into hundreds of millions of dollars. More significantly, the case could open the door to class action lawsuits that might see customers get cash back—and force both Coles and Woolworths to overhaul their discount pricing strategies.
Mate, there's a reason Australian shoppers feel like they're being taken for mugs at the checkout. This case might finally prove it.
The federal court proceedings began today in Sydney, with the ACCC presenting evidence it's been gathering for months. The regulator has been under political pressure to crack down on supermarket pricing as cost-of-living pressures mount across Australia.
Consumer advocates are calling this the "case of the century" for Australian shoppers. Unlike previous regulatory slap-on-the-wrist fines, this court action could result in structural changes to how the supermarket duopoly operates.
Coles has denied the allegations and says it will vigorously defend its pricing practices. But the reputational damage is already mounting—social media is full of customers sharing their own experiences of dodgy "specials" that looked suspiciously like regular prices with a discount sticker slapped on.
The case highlights broader concerns about market concentration in Australia. With Coles and Woolworths controlling roughly 65% of the grocery market, consumer choice is limited and regulatory oversight becomes critical.
For the thousands of Australian families who throw a box of Arnott's Shapes into their trolley each week—and dozens of other products caught up in the alleged scheme—this case could determine whether that "special" price was ever special at all.
