An Australian court case exposes the dark arts of retail pricing, offering a cautionary tale for Kenyan shoppers and regulators.

In a landmark case that has sent ripples through the global retail sector, Australia’s competition watchdog (ACCC) has dragged supermarket giant Coles to court over "illusory" discounts. The allegation is simple but damning: the supermarket jacked up prices for a brief period solely to establish a higher "was" price, making the subsequent "discount" appear generous.

The case, involving hundreds of products including dog food, exposes the psychological warfare waged in supermarket aisles. A can of dog food was raised from $4 to $6 for just seven days, only to be "discounted" to $4.50—a price still higher than the original.

The "Was" Price Trap

The ACCC argues that while the math was technically accurate, the marketing was "utterly misleading." This manipulation of the "reference price" breaches trust and consumer law.

• The Tactic: Spike the price briefly to create a fake anchor.
• The Effect: Shoppers rush to buy a "bargain" that is actually a price hike.
• The Defense: Coles claims the price shifts were genuine responses to supplier costs.

The Kenyan Angle

This case resonates deeply in Kenya, where the Competition Authority of Kenya (CAK) has previously warned retailers about similar deceptive practices. As formal retail expands in Nairobi, the line between aggressive marketing and fraud is becoming thinner.

For the Kenyan consumer, the lesson from Down Under is clear: Not every red "Sale" sticker represents a saving. Sometimes, it is just a trap.