Coles has been ordered to pay $2.5 million in penalties for making false or misleading representations and engaging in misleading conduct in relation to the promotion of its par baked bread products.
The proceedings, which were initiated by the Australian Competition and Consumer Commission, related to products that were promoted as “Baked Today, Sold Today” and in some cases “Freshly Baked In-Store” which were actually partially baked and frozen offsite.
“The contravening conduct in this case is substantial and serious,” Chief Justice Allsop said when imposing the penalty,
“The evidence before the Court showed that Coles had engaged in the campaign with the clear purpose of improving its market share vis-à-vis its competitors, being bakeries such as Bakers Delight…It set out to do so by engaging in the conduct that, in fact, breached the Australian Consumer Law”.
In September 2014, the court ordered that Coles be restrained for a period of three years from making any representation on packaging, signage, website or other promotional material that bread products were entirely baked on the day of sale or were baked from fresh dough when this was not the case; and place a corrective notice on its website and in its in-store bakeries.
ACCC Chairman Rod Sims said the penalty “sends a strong message to companies that they should not use broad phrases in promotions that are deliberately chosen to sell products to consumers but which are likely to mislead consumers”.
In December, Coles coughed up $10 million in penalties for unconscionable conduct against eight suppliers.
