Coles blames ‘ticketing error’ after customers find overpriced specials

Coles has blamed a ticketing error after consumers hunting bargains found they paid more for items “on special” than the original listed price.

A TikTok video shot by a customer in one of Coles’ supermarkets shows a yellow “special” label offering 1.25 litre bottles of 7Up at “2 for $4”, while a single bottle of the soft drink costs $1.70. Another customer video shows a Vegemite Squeeze bottle on special for $7.30, when the regular price tag behind the “special” label revealed an original price of $7.

Coles says the overpriced ‘specials’ caught on social media are ticketing errors.

The supermarket giant, which booked $1.1 billion in profits for the 2023 financial year, is treating the pricing discrepancies in the social media videos as isolated incidences.

“Coles takes clear and accurate pricing information on tickets very seriously. We always aim to ensure that our specials represent value for our customers,” a spokesperson said on Wednesday.

An initial statement from the company said it had investigated the product pricing shown in the videos, identified a ticketing error, urgently updated the “two tickets” to ensure accurate pricing, and was reviewing how the error occurred.

When this masthead subsequently pointed out more instances of “specials” that were more expensive than the normal price, such as Coles chocolate chip muffins that had a ‘quick sale’ sticker of $5.46 where they usually sell for $4.25, the company revised its statement.

“We always strive to ensure accuracy across the thousands of lines we offer,” the spokesperson said. “From time to time if an error occurs, we work urgently to resolve it including identifying any root cause.”

The competition watchdog has outlined rules about price displays: shops must not mislead consumers about prices for their products, and if more than one price is displayed for the same item, they have to charge the lowest price.

The ‘special’ price of $7.30 is higher than the original price of $7.Credit: TikTok (screenshot)

A displayed price is also considered misleading when something is promoted as being on sale or on special when it’s actually the normal price.

The consumer watchdog said it had received reports from consumers about potentially misleading promotional advertising by supermarkets.

“The ACCC is conscious that ‘was/now’ and other pricing ‘specials’ significantly influence consumers’ purchasing decisions,” a spokesperson said.

“We have for some time been considering reports from consumers about alleged false or misleading ‘was/now’ or other pricing ‘specials’ advertising by supermarkets, and whether they may raise concerns under the Australian Consumer Law.”

“As these assessments are at an early stage and are ongoing, the ACCC cannot comment further.”

Food inflation has risen 7.5 per cent over the 12 months to June and businesses have passed on higher fuel, energy and packaging to customers.

At the same time, Coles and its bigger rival Woolworths are both facing a spike in shoplifting and organised crime as shoppers struggle with bigger bills at the grocery check-out thanks to the ongoing cost-of-living crisis.

Woolworths has been accused on social media of price gouging after some TikTok users compared the prices it charged for products such as Biscoff biscuits or razor packs with those charged at competitors such as Aldi, finding in some instances double-digit differences.

Other TikTok users have taken issue with the introduction of its member-only pricing program that forces non-members to pay more.

Consumer anger over price gouging has also resulted in some vandalism: Sydney artist Cam Scott filmed himself spray-painting fake slogans like “The price gouge people” and “Down Down, Morality Down” next to Woolworths and Coles logos.

False or misleading price displays can be reported to the ACCC.

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