Full Story Coles in court: the high-stakes battle over the price of your groceries
Feb 22, 2026
Jonathan Barrett, business editor who analyses competition and retail, explains the ACCC's case against Coles over alleged “illusory” discounts. He breaks down the Nature's Gift pricing example, the scope of the 245 products under scrutiny, Coles' defence about inflation and supplier costs, and broader issues around supermarket pricing, transparency and competition.
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Dog Food Example Of Alleged Illusory Discount
- Coles sold Nature's Gift 1.2kg wet dog food at $4 for ~300 days, briefly raised it to $6 for seven days, then reduced it to $4.50 during a Down Down promotion.
- Jonathan Barrett uses this example to show the ACCC's claim that Coles temporarily raised prices to create illusory discounts on 245 items.
Coles' Inflation Defence For Price Hikes
- Coles argues price hikes during 2022–23 reflected real supplier-driven inflation, so temporary higher prices were legitimate, not misleading.
- Their legal line was that prices are temporary and brief increases can still represent a genuine new price point.
Competition Shaped The Down Down Strategy
- Evidence shows Coles tracked Woolworths' faster short-term price moves and copied the practice of brief price hikes to trigger promotions.
- Barrett says the two major supermarkets control two thirds of the market, so matching each other amplifies promotional effects.