ACCC alleges deceptive conduct over Coles fresh-baked bread

Sarah Michael and Karen Collier
June 12, 2013
news.com.au

COLES is being investigated for alleged misleading conduct over its “Baked Today, Sold Today” bread.

The Australian Competition and Consumer Commission has today instituted proceedings in the Federal Court against Coles Supermarkets for the supply of bread that was partially baked and frozen off site, transported to Coles stores and ‘finished’ in-store.

The legal action covers various “Cuisine Royale” and “Coles Bakery” branded bread products, the ACCC said in a statement.

The ACCC alleges that labels on these par-baked products stating “Baked Today, Sold Today” and in some cases “Freshly Baked In-Store”, and nearby prominent signs stating “Freshly Baked” or “Baked Fresh”, were likely to mislead consumers into thinking the bread was prepared from scratch in Coles’ in-house bakeries on the day it was offered for sale and that it was entirely baked on the day it was offered for sale.
Coles also uses the same labels to promote bread that has been made from scratch in Coles’ in-store bakeries.

The ACCC is concerned that Coles’ lack of distinction between freshly baked and par baked bread products is misleading to consumers “and places competing bakeries that do freshly bake from scratch at a competitive disadvantage”.

The legal action follows a year-long investigation triggered by former Victorian premier Jeff Kennett.

Mr Kennett sent a box of Coles’ Irish-made Cuisine Royale bread and muffins to the ACCC in July last year.

He drew attention to Cuisine Royale bread being sold with labels claiming “baked today” in-store, but small print revealing it was made from foreign ingredients in Ireland.

ACCC Chairman Rod Sims says bread is an important grocery basket staple and customers need to be confident in claims made about food they buy.

“We believe consumers are likely to have been misled by Coles that the entire baking process, including preparation, occurred in-store, when in fact the bakery products were prepared and partially baked off site, frozen, transported and then ‘finished’ in store. Indeed, the Cuisine Royale products were partially baked overseas,” Mr Sims said.

Coles faces potential fines of up to $1.1 million if found guilty.

Comment is being sought from Coles.