Federal Court Decision on Misleading Pricing at Coles Supermarkets

Introduction

The Federal Court of Australia has ruled that Coles misled customers by advertising fake discounts through its 'Down Down' promotional campaign.

Main Body

The legal case was started by the Australian Competition and Consumer Commission (ACCC) and focused on how Coles used 'was/is' pricing. The court looked at the prices of various household goods between January 2021 and May 2023. Evidence showed that Coles often raised prices for a short time—usually only four weeks—before introducing a 'discounted' price. However, this new price was often the same as or even higher than the original price. Justice Michael O'Bryan emphasized that for a discount to be genuine, the original 'was' price must have been in place for at least 12 weeks. Coles argued that these practices were necessary to compete with Woolworths and to cover rising costs from suppliers during a period of inflation. While the court accepted that the initial price increases were reasonable for business reasons, it asserted that marketing these price spikes as discounts broke Australian Consumer Law. Out of 14 promotional labels tested, 13 were found to be misleading. Only one item, dog food, was excluded because the label did not show a 'was' price. This decision is expected to affect a similar legal case against Woolworths regarding its 'Prices Dropped' program. Furthermore, the ruling may force supermarkets to change their internal pricing rules and could lead to new government requirements for how prices are displayed to the public.

Conclusion

Coles has been found to have broken consumer law and is now waiting for the court to decide on the financial penalties.

Learning

⚡️ The Power of 'The Shift': Moving from Simple to Complex Logic

At the A2 level, we usually speak in simple blocks: "Coles changed prices. The court was angry."

To reach B2, you need to connect these blocks using Contrasting Transitions. This allows you to show two opposing ideas in one sentence, making you sound professional and fluent.

🔍 The 'While' Pivot

Look at this specific sentence from the text:

"While the court accepted that the initial price increases were reasonable... it asserted that marketing these price spikes as discounts broke Australian Consumer Law."

Why this is a B2 move: The writer isn't just listing facts. They are using While [Fact A], [Fact B] to show a conflict.

  • Fact A: The price increase was okay.
  • Fact B: The advertising of that increase was illegal.

🛠 How to apply this to your speech

Stop using "But" at the start of every sentence. Instead, try the While-Symmetry pattern:

  • A2 Style: I like my job. But the salary is low. ❌
  • B2 Style: While I like my job, the salary is quite low. ✅

🚀 Vocabulary Upgrade: Precision Verbs

B2 students stop using "say" or "think" and start using Assertive Verbs. Notice the shift in the article:

A2 WordB2 Upgrade (from text)Contextual Meaning
SaidAssertedSaid something strongly and officially
Pointed outEmphasizedMade a specific point very clear
RuledExcludedDecided that something does not belong

Pro Tip: Next time you disagree with someone in English, don't just say "I think you are wrong." Try: "While I understand your point, I would assert that the data shows something else."

Vocabulary Learning

misleading (adj.)
giving a false impression or leading someone to believe something that is not true
Example:The advertisement was misleading, giving customers the wrong idea about the actual price.
advertising (n.)
the activity or profession of promoting products or services through paid channels
Example:The company’s advertising campaign claimed the product was free, but it was not.
discount (n.)
a reduction in the usual price of something
Example:Customers were attracted by the large discount on the new appliances.
promotional (adj.)
relating to the promotion or marketing of a product or service
Example:The promotional campaign used bright colours to catch shoppers’ attention.
pricing (n.)
the act of setting or determining the price of goods or services
Example:The company’s pricing strategy aimed to stay competitive while covering costs.
competition (n.)
the rivalry between businesses or individuals to achieve a goal or gain an advantage
Example:The competition between Coles and Woolworths drives price reductions.
inflation (n.)
a general increase in prices and fall in the purchasing value of money
Example:Inflation has caused suppliers to raise their prices, affecting the final cost to consumers.
reasonable (adj.)
fair and sensible; within normal limits
Example:The court found the initial price increases to be reasonable for business reasons.
marketing (n.)
the process of promoting and selling products or services
Example:Effective marketing can create a strong brand identity in a crowded market.
spike (n.)
a sudden sharp increase, especially in price or quantity
Example:The price spike during the holiday season surprised many shoppers.
break (v.)
to violate or go against a rule or law
Example:Using the word 'discount' to describe a price increase broke Australian Consumer Law.
consumer law (n.)
laws that protect the rights of buyers and consumers in commercial transactions
Example:The company was fined for violating consumer law by misrepresenting prices.
label (n.)
a tag or piece of information attached to a product to provide details
Example:The label on the product listed the original price and the discounted price.
display (v.)
to show or present something for people to see
Example:Retailers must display prices clearly so customers can make informed choices.
financial (adj.)
relating to money or the management of money
Example:The court considered the financial penalties that could be imposed on the retailer.
penalty (n.)
a punishment imposed for breaking a rule or law
Example:The retailer faced a significant penalty for misleading consumers.
ruling (n.)
an official decision made by a court or judge
Example:The ruling clarified that misleading pricing practices are illegal.
internal (adj.)
existing or operated within an organization or system
Example:Supermarkets may need to revise their internal pricing rules after the decision.
requirement (n.)
a condition or rule that must be met or followed
Example:The new requirement will force retailers to show original prices on labels.
public (adj.)
relating to the general population or community
Example:The government will set new public standards for how prices are displayed.