Coles withdraws discount offer after ACCC probe

Coles is in the process of withdrawing a discount offer that offered fuel discounts of up to 40 cents per litre if customers purchased over $300 worth of goods, following discussions with the Australian Competition and Consumer Commission.

The ACCC issued a statement in which it said a balance needs to be found between providing consumers with a discount, and offering significant price cuts for “sustained periods of repeated offers” which could have a longer-lasting effect.

“The ACCC is not satisfied on information currently available that this promotion struck the right balance,” it said.

Coles offered the discount to customers who purchased goods between the 16th to 29th of October, while 25 and 10 cent discounts were offered for customers who purchased goods worth over $200 and $100 respectively.

While the ACCC said it acknowledges benefits from fuel shopper docket arrangements, it also noted the possibility they could offer significant price cuts which could have a deep impact on competition “in the long-term”.

“Having received notice of the proposed promotion late yesterday afternoon, the ACCC
communicated with senior Coles’ executives raising its concerns. This resulted in a decision by Coles to withdraw the promotion,” it said in a statement.

“Coles is now dealing with the logistics of withdrawing the promotion completely and informing its customers.”