Federal Court Orders mega-retailer Coles to Advertise its Dishonesty
by AAP via shopper - ninemsn Monday, Sep 29 2014, 3:00am
international / prose / post

In what is a clear indictment of former CEO/MD Ian McLeod's top-down style of "deceptive, dishonest and misleading" cowardly management (he couldn't run fast enough before the court case) the Federal Court has made a spectacle of this foreign, lying CEO for the world to see! Other dishonest CEOs may think twice before chasing bonuses/profit via deceptive trading and dishonest practices.

Bonus chasing cowboy CEO, Ian 'dishonest' McLeod

The case was brought to the Courts by the Oz regulator the ACCC, which has many more cases against large dishonest corporations pending -- take note all white-collar liars and cheats! Attempting to deceive the good people of Oz for profit is completely unacceptable, notwithstanding the health and other risks associated with this type of managerial criminal behaviour. Take note Australia, if it's rotten at the very top the rot permeates through the entire managerial structure, as anyone that has been victimised or has a valid grievance/complaint against this sordid company knows only too well -- good work Mr Rod Sims and his team of competent investigators at the ACCC.

Mainstream media story follows:

Coles Slapped with 'Fresh Bread' Ad Ban

Supermarket giant Coles will have to hang signs in its stores admitting that it passed off par-baked bread as freshly baked.

The Federal Court on Monday ordered Coles to display the signs for three months in prominent positions within its supermarkets and on its website.

The notices, which are due to go up within a fortnight, will tell customers that Coles broke Australian consumer law by falsely advertising that its par-baked bread was freshly baked.

The court also slapped a three-year ban on Coles for advertising par-baked bread as being freshly baked.

While Coles is not allowed to advertise bread as fresh that has been pre-cooked off-site, frozen and re-baked, it can still advertise bread made from scratch in-store and sold on the same day as fresh.

The competition watchdog has welcomed the court's ruling, saying it will continue its crackdown on companies being untruthful in their advertising.

Australian Competition and Consumer Commission chairman Rod Sims said the watchdog was cracking down on "credence" claims generally and not just targeting supermarkets.

Recent examples include Basfoods being fined for saying its Turkish-made honey was Victorian-made and Pirovic Enterprises for falsely claiming its eggs were from free range hens.

Maggie Beer and Carlton and United Breweries have also been targeted.

"We have done a lot of these cases trying to get more accurate statements by companies that are attributing certain features to their products," Mr Sims told AAP.

"We think it's important, firstly consumers get what they paid for, secondly competitors who are doing the right thing don't lose out - here Coles were competing against hot bread shops - and thirdly people can innovate and get the benefits of that innovation without having people falsely make claims that undermine them."

Federal Court judge James Allsop made the ruling on Monday after he found Coles guilty in June of making false, misleading and deceptive representations in relation to the freshness of its bread.

The case was brought by the ACCC after former Victorian premier Jeff Kennett complained when he discovered a loaf of Coles bread that was advertised as freshly baked in-store had been made in Ireland.

The court is yet to make a decision on whether to fine Coles, which faces penalties of more than $3 million.

Coles said it would comply with the orders.

A final check of stores would be complete within seven days to ensure any affected signage has been removed, a spokesman said.

Consumer group CHOICE called on consumers to come forward with crazy credence claims they have identified.

"Credence claims such as 'freshly baked' or 'baked today' can lead consumers to pay a premium in the mistaken belief they are purchasing a superior product," spokesman Tom Godfrey said.

© 2014 AAP

http://finance.ninemsn.com.au/newsbusiness/aap/8912536/court-bans-coles-fresh-bread-ads