Coles to correct $1 milk claims

Retailer admits it likely contravened consumer law on misleading conduct.

Wesfarmers-owned (WES) supermarket giant Coles will publish corrective advertisements about its $1 milk offer after admitting to the consumer watchdog that it likely contravened consumer law on misleading or deceptive conduct.

The agreement follows an Australian Competition and Consumer Commission investigation into a video and cartoon about Coles brand milk, published on social media, that made claims about the effect on farmers of a milk price cut.

ACCC chairman Rod Sims said the retailer claimed the farmgate milk price lifted from 86c per two litre bottle of Coles-brand milk in 2010-11, to around 90c in 2011-12.

"In fact this was an estimate and final industry figures showed the 2011-12 farmgate milk price actually decreased to 84c," Mr Sims said in a statement.

Coles has admitted these representations would likely have contravened consumer law prohibitions against misleading or deceptive conduct, the commission said.

The ACCC said Coles had worked with the watchdog to resolve its concerns and would publish corrective advertisements on the same online platform.

Earlier, Mr Sims told Business Spectator he spends very little time dealing with the major supermarkets, despite a perception this takes up the bulk of the watchdog's resources.

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