Coles ‘Down Down’ Promotion Class Action
Benjamin Glenn Demery v Coles Supermarkets Australia Pty Ltd
In November 2024, Gerard Malouf and Partners commenced a class action in the Federal Court of Australia, in Victoria, against Coles Supermarkets Australia Pty Ltd. This class action seeks compensation for loss on behalf of the lead applicant, Benjamin Glenn Demery, and group members against Coles in respect of alleged illusory pricing practices that occurred between February 2022 and May 2023. Known as the Demery Proceedings, the case centres on allegations that Coles misled consumers with supposed discounts on hundreds of commonly purchased products, potentially breaching the Australian Consumer Law by making false or misleading representations.
This class action follows legal proceedings started by the ACCC in September 2024, claiming that Coles misled shoppers with discount pricing on hundreds of products. While the ACCC case focuses on penalties, this class action is about securing compensation for affected customers.
Current status
On 23 September 2024, GMP Law launched an investigation into a potential class action against Coles (and Woolworths).
As a result of its investigation, GMP Law filed a class action in the Victorian Registry of the Federal Court of Australia on 14 November 2024. The claim seeks financial redress for affected consumers who purchased products at Coles (in-store and online) during February 2022 and May 2023.
GMP Law Chairman, Gerard Malouf, states, “We estimate that the average Australian consumer could be eligible for a refund ranging between $200 and $1,300+, depending on their shopping habits and purchases at these retailers. We believe this class action is an essential move toward safeguarding consumer rights and demanding transparency in retail practices, Australia-wide.”
The class action is continuing to move through the Federal Court, with a number of important steps already taken:
- Coles filed its Defence on 4 April 2025, and GMP Law filed a Reply to the Defence on 16 May 2025
- The Court also ordered Coles to provide a Statement of Agreed Facts to GMP Law by 16 May 2025
- On 23 May 2025, the Federal Court made further orders to streamline the proceedings. It directed that a joint initial trial will take place to determine whether Coles engaged in misleading or deceptive conduct, or made false or misleading representations about product pricing, in breach of the Australian Consumer Law. This trial will focus on common issues of liability in both the Demery and ACCC proceedings, using a representative sample of ‘Affected Products’
- On 18 and 19 June 2025, the parties filed an Agreed List of Sample Products and Agreed Common Questions to be considered at the initial trial on liability
- All parties are required to file and serve their evidence by 22 November 2025.
The next case management hearing is scheduled for 9:30 am on 25 August 2025 in Melbourne.
Developments leading to the Class Action
On 27 September 2024, the ACCC released their Interim Report for the Supermarkets Inquiry.
It revealed:
- The Australian supermarket sector is dominated by an oligopoly
- Coles and Woolworths account for 67% of supermarket retail sales nationally
- The price of a typical basket of groceries has increased by more than 20% in the past five years.
In February 2025, the ACCC released their final report for the Supermarkets Inquiry, recommending, amongst other measures, that supermarkets should be required to publish clear and accurate pricing information that is available conveniently to consumers.
About the class action
This class action concerns serious allegations against Coles in relation to its pricing and promotional practices.
It is alleged that Coles temporarily increased the prices of 255 Affected Products. These items were then placed on ‘Down Down’ promotions at prices that were higher than, or the same as, the regular prices before the temporary increase. The core issues of this class action include:
Misleading and deceptive conduct: Coles is accused of using ‘Down Down’ tickets in stores and online in a way that may have misled customers into thinking they were getting genuine discounts. It is alleged that the ‘Down Down’ prices were not actually lower than the usual prices (known as the Down Down Representation)
Breach of Australian Consumer Law: The class action alleges that Coles engaged in false or misleading representations in breach of the Australian Consumer Law
Financial harm to consumers: There are claims that consumers suffered financial losses by paying more for products than they would have if the pricing had been accurately presented.
Financial harm to consumers: Consumers may have relied on the ‘Down Down Representation’ when deciding to buy products, believing they were getting a discount. As a result, they may have paid more than they should have, leading to financial loss
Failure to provide genuine discounts: It is alleged that Coles did not offer real price reductions despite advertising products as discounted.
The issue
The class action alleges that Coles promoted products with “Prices Dropped” and “Down Down” labels, claiming discounts that were potentially misleading or non-existent.
Alleged affected products
The following products have been alleged to be affected, as detailed in the Concise Narrative Statement filed by the ACCC in Federal Court to initiate proceedings:
Product list
Arnott’s Shapes biscuits
Band-Aids
Bega cheese
Cadbury chocolates
Coca Cola soft drink
Colgate toothpaste
Danone yoghurt
Dettol multi-purpose wipes
Fab laundry liquid
Karicare formula
Kellogg’s snack bars
Kleenex tissues
Libra tampons
Lurpak butter
Maggi two-minute noodles
Nature’s Gift dog food
Nescafe instant coffee
Palmolive shampoo
Rexona deodorant
Sakata rice crackers
Sanitarium Weet-Bix cereal
Strepsils lozenges
Sunrice rice
Tena pads
Viva paper towels
Whiskas cat food
Zafarelli pasta
NB: This is not an exhaustive list, and additional products may be included as the investigation progresses.
Financial impact
Consumers have paid more for products than they would have if the pricing had been accurately represented, resulting in potential financial losses.
What’s next?
GMP Law is actively progressing the class action on behalf of affected consumers. This includes continuing to build the case, reviewing evidence, and advancing legal proceedings against Coles. GMP Law remains committed to holding Coles accountable for the alleged conduct and seeking compensation for those impacted.
GMP Law will update all registered group members on the progress of the Coles Down Down Promotion Class Action (Demery proceedings).
Are you eligible for compensation?
You may be eligible to join the class action and claim compensation if:
- You shopped at Coles in Australia, in-store or online, between February 2022 and May 2023
- Purchased products marked as “Priced Dropped” or “Down Down”.
To register your interest:
- Gather any evidence
- Register with GMP Law.
How are we collecting evidence to substantiate our Price Drop Class Action?
To substantiate our class action, we are gathering evidence in several key ways. The Australian Competition and Consumer Commission (ACCC) has alleged that Woolworths was involved with 266 products over a span of 20 months, and Coles with 245 products over 15 months.
Our investigation will focus on obtaining records from potential class members, including the date and time of purchases and the prices paid.
Helpful evidence to support your claim includes:
1. Rewards program data
Collecting data from Woolworths and/or Coles Rewards programs, which track:
- Time and date of purchases
- Pricing information
- Discounts applied.
2. Receipts
Gathering receipts for discounted products as proof of purchase.
3. Statutory declaration
If the matter is successful and people do not have their receipts but have been affected by the pricing and suffered loss, they will be able to make a claim via statutory declaration.
Risk-free participation
There is no financial risk in registering with our firm and becoming a class member. We operate on a No Win No Fee basis. You will not incur any legal fees unless we win your case. If successful, the court may order the defendant to cover your legal fees and out-of-pocket expenses.
If the claim is unsuccessful, you will not be personally liable for any costs.
Take action today to ensure your rights are represented and to pursue the compensation you deserve.
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