Coles has agreed to pay dairy co-operative Norco $5.25 million more for its milk after the consumer watchdog flagged what it says looked like misleading claims about price increases being passed on to farmers.
The Australian Competition and Consumer Commission says Coles did not pass on in full a 10 cents per litre price increase to Norco, which supplies the chain's own-branded milk, despite advertisements claiming farmers would benefit.
The ACCC says it had been prepared to take the supermarket giant to court for what it believes was "an egregious breach of the Australian Consumer Law", but that its investigation has been resolved after Coles agreed to up its payment by seven cents per litre - totalling $5.25 million between April 2019 and June 2020.
