ACCC vs Coles: Court Battle Over Alleged Fake Grocery Discounts

Why the “Was/Is” Pricing Fight Could Redefine Australian Supermarkets

The Australian Competition and Consumer Commission (ACCC) has taken the nation’s two‑big‑grocery‑store duopoly to federal court, accusing Coles (and later Woolworths) of using “illusory” discounts that mislead shoppers. The case, often dubbed the “was/is” pricing showdown, is more than a legal battle – it’s a potential catalyst for sweeping change across the retail food sector.

What the ACCC’s allegations really mean

According to the ACCC, many items were temporarily marked up before being advertised as discounted under promotions such as “Down Down”. In practice, the “discounted” price was often the same as, or higher than, the product’s long‑term regular price – a classic example of “was/is” pricing. This practice has been described as “tricky pricing tactics” that obscure true savings for consumers【choice.com.au】.

Coles argues the price spikes were driven by rising supplier costs – from global commodity surges to higher freight and packaging expenses – and that the “non‑promotional price” was genuine and unavoidable【smh.com.au】.

How this case could reshape pricing transparency

If the court rules against the supermarkets, we can expect a cascade of reforms:

• Clearer price labelling: Mandatory “original price” timestamps and verifiable discount percentages.
• Standardised promotion periods: Limits on how long a price can be inflated before a discount can be applied.
• Greater supplier disclosure: Transparency around cost pressures that influence shelf prices.

These measures echo the ACCC’s 20‑point recommendation list released in its 2025 supermarket inquiry, which urged “verifiable discount promotions” and “clear notifications when package sizes change”【choice.com.au】.

Consumer sentiment: The growing scepticism

Recent surveys show four in five shoppers find it hard to tell whether a markdown is a genuine saving. In a 2024 Choice survey, 88% of respondents expressed worry about rising grocery costs, while 83% said they struggled to determine if specials offered real value【guardian.com】. This distrust is fueling calls for tighter regulation and could shift buying behaviour toward discount retailers, online platforms, or direct‑to‑consumer models.

Potential future trends for the grocery sector

1. Rise of “price‑first” retailers

Supermarkets that adopt transparent, everyday‑low‑price (EDLP) strategies may capture market share from traditional “high‑low” discount models. Companies like Aldi and Costco, which emphasize simple, consistent pricing, are already expanding their footprint in Australia.

2. Growth of digital price‑tracking tools

Apps that scan barcodes and compare historical pricing data are gaining traction. As consumers demand proof of discounts, tech solutions that flag “was/is” anomalies could become mainstream, pressuring retailers to clean up their pricing decks.

3. Increased supplier bargaining power

If the ACCC’s case highlights supplier cost pressures, we may see more collaborative pricing frameworks where suppliers share cost‑inflation data with retailers, leading to joint‑responsibility pricing models.

4. Regulatory‑driven “price‑audit” certifications

Just as “Organic” or “Fair‑Trade” labels certify production standards, a government‑backed “True‑Discount” badge could emerge, allowing shoppers to instantly recognise compliant promotions.

What retailers can do now – Pro Tips

• Audit your promotions: Conduct internal reviews to ensure “was” prices reflect genuine long‑term pricing.
• Educate staff: Train frontline employees to explain discount logic to customers.
• Leverage data: Use point‑of‑sale analytics to detect unintended price inflations before they become promotions.
• Communicate openly: Publish cost‑inflation reports that detail why certain items may see temporary price adjustments.

FAQ – Quick Answers to Common Questions

What is “was/is” pricing?

A promotional tactic where a product’s price is temporarily raised (“was”) and then advertised as a discount when it returns to a lower price (“is”). The “discount” may be misleading if the “was” price was never a regular price.

Why does the ACCC care about these discounts?

Under Australian consumer law, misleading price representations constitute a breach. The ACCC aims to protect shoppers from deceptive pricing and ensure fair competition.

Will this case affect all Australian supermarkets?

While the current lawsuit targets Coles and Woolworths, any retailer using similar pricing methods could face scrutiny, prompting industry‑wide changes.

How can I spot a fake discount?

Check price history using price‑tracking apps, look for “price dropped” labels without a clear “regular price” period, and be wary of promotions that appear suddenly after a short price spike.

Looking Ahead

The court’s decision will likely set a precedent for how “discounts” are defined and regulated in Australia. Whether it leads to stricter enforcement or sparks a wave of innovative pricing models, the outcome will shape the shopping experience for millions of Australians.

What do you think? Share your thoughts in the comments, explore more articles on grocery pricing trends, or sign up for our newsletter to stay ahead of the latest consumer‑law developments.