Coles' 'Down Down' Price Tags: A Misleading Misunderstanding?
The ongoing legal battle between Coles and the Australian Competition and Consumer Commission (ACCC) has shed light on the supermarket's controversial 'Down Down' price tags. On the second day of the federal court case, Coles downplayed the meaning behind these tags, stating that shoppers didn't understand the message as much as they thought.
The ACCC claims Coles engaged in a planned campaign to mislead customers with fake or 'illusory' discounts on everyday items. The 'Down Down' promotion, in particular, is under scrutiny. The ACCC argues that the 'Down Down' price was often the same as or higher than the regular price, contrary to what shoppers perceived.
During the trial, Justice Michael O'Bryan questioned Coles about the impact of their marketing campaign, featuring giant red hands pointing down. He emphasized the need to understand what ordinary consumers took away from the 'Down Down' program.
Coles' legal counsel, John Sheahan KC, responded by downplaying the significance of the red hand symbol, suggesting that consumers didn't interpret it as a significant message. He argued that the campaign aimed to convey that Coles was committed to keeping prices low.
However, the ACCC presented evidence showing that the 'Down Down' pricing strategy involved temporary price increases followed by discounts. For instance, a 1.2-kilogram loaf of Nature's Gift Wet Dog Food was sold for $4 for almost 300 days, then increased to $6 for seven days, and finally labeled 'Down Down' at $4.50, a 13% increase over the previous price.
Coles defended its pricing strategy, arguing that all prices are temporary and that adding detailed price history information would make the tickets too complex. They also claimed that the ACCC failed to define what a regular price should be and how long it should be offered.
The case continues, with both sides presenting their arguments and evidence. The outcome will determine whether Coles' 'Down Down' campaign was indeed misleading or a genuine discount initiative.
