Coles wrapped by Federal Court over 'Down Down' fake discounts; sector braces for 12-week markdown rule
Australia's Federal Court ruled Coles misled shoppers by hiking prices before 'Down Down' promotions. Coles shares fell 2.7% and Woolworths slid 1.9% awaiting a parallel verdict. The decision effectively establishes a 12-week pre-markdown price benchmark, reshaping promo mechanics across Australian retail.
Australia's Federal Court found Coles misled shoppers via 'Down Down' discounts that followed temporary price hikes. Shares fell 2.7%; Woolworths dropped 1.9% awaiting similar ruling. Effectively sets a 12-week markdown benchmark across retail categories.
Why this matters
Builds on the ACCC 'Down Down' case where the Federal Court already flagged fake discounts and found Coles guilty on 13 of 14 promotions, now hardening into a 12-week pricing rule.
Retail-company signals steady at 252 over the past 90 days, with regulatory pressure now a recurring driver.
Also reported by
- Inside Retail Asia — Same time