The Federal Court has found claims made by Coles that its bread was ‘Baked Today, Sold Today’ and in some cases ‘Freshly Baked In-Store’, were false, misleading, and deceptive, in proceedings brought by the Australian Competition and Consumer Commission (ACCC).

The bread products were partially baked and frozen off site by a supplier, transported, and ‘finished’ at instore bakeries within Coles supermarkets.

These bread products were promoted at Coles’ supermarkets with in-house bakeries as ‘Baked Today, Sold Today’ and in some cases ‘Freshly Baked In-Store’.

In addition, some of these products were offered for sale at Coles’ supermarkets close to prominent signs which stated ‘Freshly Baked’ or ‘Baked Fresh’.

The court found that the “Baked Today, Sold Today”, “Freshly Baked” and “Baked Fresh” claims made by Coles amounted to a misleading representation that the par baked bread products had been baked on the day of sale or baked in a fresh process using fresh not frozen product.

“The ACCC brought these proceedings because it was concerned that Coles’ ‘Baked Today’ and ‘Freshly Baked’ claims about par baked bread were likely to mislead consumers,” ACCC chairman, Rod Sims, said.

“These claims also placed independently-owned and franchised bakeries that freshly bake bread from scratch each day at a competitive disadvantage.”

“Today’s decision confirms that Coles misled consumers about the baking of these bread products. Consumers should be able to rely on the accuracy of credence claims made by businesses like Coles to promote their products, especially where those claims are used to compete with smaller businesses which are genuinely offering a differentiated product,” Sims said.

A hearing will be held in the Federal Court in Melbourne at a later date to determine the relief that will be ordered.

The ACCC is seeking penalties, declarations, injunctions, costs, and other orders.