Coles is fighting back in federal court over its famous "Down Down" price cuts. The Australian Competition and Consumer Commission (ACCC) says Coles used fake discounts by first hiking prices, then slashing them to look like a bargain. The case started this week. The ACCC claims Coles misled customers by selling products at normal prices for months, raising prices sharply for just seven days, then offering small "Down Down" discounts. For example, dog food prices were raised nearly 50% for a week before being reduced. Coles’ lawyer John Sheahan argued on Tuesday that shoppers view the "Down Down" deals as real discounts. "What they would be concerned with ... is whether the claimed discount … was fair dinkum," he said. He added that as long as the base price is genuine, customers' interests are met. Coles said their promotions reflect real price drops despite rises in supplier costs and inflation. The court case will examine the supermarket's pricing closely. It will also impact a similar lawsuit against Woolworths, another major Australian supermarket chain. Both Coles and Woolworths control about two-thirds of the grocery market in Australia. The ACCC is pushing for big fines and community orders against Coles. Their lawyer, Garry Rich SC, called the discounts "utterly misleading" because prices were not actually lower than the previous long-term price. The hearing is ongoing.