Coles has appeared before the Federal Court in Melbourne, as hearings for a high-stakes case launched against the supermarket by Australia’s consumer watchdog officially begin.

The Australian Competition and Consumer Commission (ACCC) is alleging Coles misled consumers with “illusory” discounts between February 2022 and May 2023.

The watchdog alleges that in this period, Coles temporarily increased the prices of “at least 245 different products”, then placed them on “Down Down” promotions which were:

higher than, or the same as, the price at which each product had ordinarily been offered for sale.

higher than, or the same as, the price at which each product had ordinarily been offered for sale.

In opening arguments on Monday, head counsel for the ACCC, Garry Rich SC, described the supermarket’s conduct as “utterly misleading”.

While Coles’ legal team only addressed the court for a short time on Monday, barrister John Sheahan KC said Coles customers were aware of price movements before making purchases.

Coles has signalled it will argue the price increases in question represented a genuine response to surging costs.

So, what exactly is at stake for one of Australia’s largest supermarket........

© The Conversation