The ACCC has called into question a fuel discount promotion undertaken by supermarket giant Coles, forcing them to withdraw the offer.
According to the ACCC, Coles Express proposed to offer discounts of 40 cents per litre to customers who purchased more than $300 at a Coles supermarket between 16 and 29 October. Discounts of 25 cents per litre and 10 cents per litre were to apply to purchases of above $200 and $100 respectively.
The ACCC questioned the promotion, claiming it did not strike the right balance between providing benefits to the consumer and promoting competition within the marketplace.
In a statement, the ACCC said: “There is a balance to be found between providing consumers with discounts on the one hand, and on the other offering significant price cuts for sustained periods or repeated offers which might have deeper impact on competition in the long term. The ACCC is not satisfied on information currently available that this promotion struck the right balance.”
Coles is now in the process of of withdrawing the promotion completely and informing its customers.