Coles could be burnt on fresh baked claims Supermarket giant Coles has been wrongly labelling its bread as baked in-store, the competition watchdog says. The Australian Competition and Consumer Commission has taken legal action against the Wesfarmers-owned supermarket chain, seeking penalties including fines for allegedly deceiving and misleading its customers. Coles' artisan-type breads are par baked and frozen before being distributed to supermarkets with in-house bakeries and finished off before sale. Some of those products have been promoted as "Baked Today, Sold Today" or "Freshly Baked In-Store," and are also shelved near signs stating `Freshly Baked', the ACCC alleges. "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," ACCC Chairman Rod Sims said in a statement. Indeed, the Cuisine Royale products were partially baked overseas. Mr Sims said smaller competing franchises may have suffered detrimental effects as a result of Coles' action. "Misleading credence claims can undermine the level playing field and disadvantage other suppliers," he said. The watchdog wants Coles fined and corrective notices posted in-store and online about its bakeries. The Coles matter is scheduled to be heard in the the Federal Court in Melbourne on August 13.