7am Inside the Coles and Woolworths 'fake' discounts case
Feb 21, 2026
Peter Martin, economist and journalist known for clear analysis of public policy and the economy, breaks down the court case against Coles and Woolworths. He discusses how social media tipped off regulators. He highlights viral examples like the Cadbury Caramello Koala and explains the scope of alleged misleading discounts. He also covers legal strategies, potential penalties, and wider competition fixes.
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Viral Cadbury Post Sparked The Probe
- A TikTok post about Cadbury Caramello Koalas went viral and drove scrutiny of supermarket pricing.
- The post showed the product jumped from $1 (discounted to $0.80) to $2 then marked half-price at $1, sparking public outrage.
ACCC Focused On Stable-Price Flip Cases
- The ACCC presented about 500 cases focusing on products with steady prices for six months before brief hikes and 'discounts' that returned to prior levels.
- If consumers relied on those promotions as genuine savings, the ACCC argues the conduct was misleading and deceptive.
Supermarkets' Trust Collapsed Post‑COVID
- Public trust in Coles and Woolworths plummeted from very high during COVID to extremely low amid pricing controversies.
- Rising prices in 2022 and perceived margin widening triggered sustained consumer anger and scrutiny.