Coles has stood by its “down down” discount strategy, asserting that customers recognize these as genuine price cuts.

The retail behemoth presented its case to the Federal Court, arguing that consumers perceive these promotions as actual savings, while criticizing the consumer watchdog for overestimating the complexity of the average shopper’s thought process.

Sheahan pointed out that the Australian Competition and Consumer Commission’s (ACCC) argument was overly intricate for what an average shopper would contemplate when browsing a Coles aisle.

He noted the unusual nature of the case, emphasizing that the regulator seemed to expect a higher level of analytical thinking from the typical consumer than is realistic.

“Typically, advertisers argue that consumers have the ability to see through marketing tactics and understand them. However, this situation appears to be the reverse,” he remarked.

“The ACCC seems to assume a complex level of interpretation from the average consumer regarding what is essentially a straightforward advertisement,” he concluded.

Justice O’Bryan said it seemed the task for the court was to simply to conclude what was conveyed and if it was misleading.

Sheahan said grocery prices often fluctuated, particularly during periods of high inflation, such as 2022 and 2023.

“In the end all prices are temporary – nothing lasts forever,” he said.

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