baker sells bread during the Mistura gastronomic fair in Lima, September 5, 2014. The fair seeks to promote Peruvian cuisine by showcasing food and products from all over the country. Exponents of Peruvian cuisine and foreign chefs are also participating
In PHOTO: Baker sells bread during the Mistura gastronomic fair in Lima, September 5, 2014. The fair seeks to promote Peruvian cuisine by showcasing food and products from all over the country. Exponents of Peruvian cuisine and foreign chefs are also participating in the fair, which runs from September 4 to 14. Reuters/Stringer
baker sells bread during the Mistura gastronomic fair in Lima, September 5, 2014. The fair seeks to promote Peruvian cuisine by showcasing food and products from all over the country. Exponents of Peruvian cuisine and foreign chefs are also participating in the fair, which runs from September 4 to 14. REUTERS/Mariana Bazo (PERU - Tags: SOCIETY FOOD BUSINESS)

Australian supermarket giant Coles is figuratively eating humble bread after the federal court ordered it on Monday to place signs for three months that it passed off par-baked bread as freshly baked. In other words, Coles is forced to admit that it used false advertising and was cheating consumers.

Along with the order to place the humiliating signs in prominent areas of its retail outlets, the court also banned Coles for three years from advertising bread pre-cooked elsewhere, frozen and re-baked, it allowed advertising bread made from scratch in the store and sold the same day as fresh.

The Australian Competition and Consumer Commission (ACCC) agreed with the court's decision and said it would watch closely and sanction other retailers, not just supermarkets, which resort to false advertising.

ACCC Chairman Rod Sims cited Basfood which it penalised for claiming its made-in-Turkey honey was manufactured in Victoria and Pirovic Enterprise which claimed its eggs came from free-range hens. Sims said the regulator is now targeting Maggie Beer and Carlton and United Breweries.

Federal Court Judge James Allsop is still deciding if it would slap Coles with a fine which could reach millions.

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