Coles guilty over ‘freshly baked’ claims

The Aussie supermarket was misleading consumers by claiming their bread is baked fresh every day, according to the Federal Court. So how is made?

Coles has been found guilty of mislabelling bread as "freshly baked" when it was actually made months ago overseas. Source: Supplied

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.

Former Victorian Premier Jeff Kennett initially put the issue in the spotlight. Source: News Corp 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.

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