printable version PDF version

Coles fined $3m - Oz Law Bears Down on Crooked CEO Ian McLeod
by staff report via shopper - News Limited Wednesday, Jun 18 2014, 12:50am
international / prose / post

In an outcome that was anticipated for Coles' cowboy CEO, Ian McLeod, who had a track record of being hauled before the courts in the UK for deceptive practices, Australian Law today handed down a $3 million fine to Coles for misleading the public and other breaches of Consumer Law -- are you reading this parent company Wesfarmers, think twice before employing KNOWN crooked foreign CEOs in the future?

Ian McLeod

Coles has a number of cases to defend in the Federal Court, which it has a snowflake's chance of winning; according to experts the 'best' (decisions) are yet to come for the McLeod style of dishonest, deceptive management -- bets are still on that he will grab his money and run come July, as these COWARDLY, hit-run, bonus-chasing types have no allegiances whatsoever; it pays to employ local talent that respect local values and are not destructive of local industries as McLeod clearly 'was' -- he stepped down from his leadership role (typical) a few days before the Federal Court case!

Report from News Ltd follows:

Coles found guilty of misleading customers

SUPERMARKET giant Coles is facing more than $3 million in fines after losing a court battle over the freshness of its bread.

The Federal Court agreed with the consumer watchdog’s case that Coles falsely advertised pre-cooked bread as freshly baked.

Bread from the “Cuisine Royale” and “Coles Bakery” range advertised as “fresh, baked today and sold today” included one product from Ireland first baked months earlier.

Other loaves that the company claimed were “freshly baked” were found to have been made in Denmark and Germany before being frozen and transported to Australia.

Chief Justice Allsop ruled that Coles breached three sections of Australian Consumer Law and the “Baked Today, Sold Today” labels amounted to a misleading representation.

“It is not the place of the court to provide an advice …as to how Coles might sell bread that has been par-baked from frozen product…A start would, however, be to make it tolerably clear to the public that the recent baking was the completion of a baking process that had taken place sometime before, off site, and that “freshly baked” actually meant the completion of the baking process of frozen product prepared and frozen off site by suppliers,” he said.

A lawyer for Coles argued the supermarket never intended the labels to be misleading.

The case follows a year-long investigation from the ACCC triggered by former Victorian Premier Jeff Kennett who discovered his “freshly baked” bread was made from foreign ingredients in Ireland.

“I don’t feel any sense of vindication or pride whatsoever,” Mr Kennett said about today’s ruling.

“I just hope it sends a message across the bow of all advertising agencies... that we expect them to be able to offer their products or services to use in a way that accurately reflects what they are offering us.

“I am very pleased that Coles have accepted the umpire’s decision and are not going to challenge it further. I respect that.”

The ACCC has also instigated separate proceedings against Coles for alleged “unconscionable conduct” towards 200 small suppliers, alleging that the company attempted to secure better trading terms and improve their earnings through rebates.

© 2014 News Limited

http://tinyurl.com/q9art2b