The Australian Competition and Consumer Commission (ACCC) has confirmed that three retailers paid a penalty of $19,800 after being issued an infringement notice.
Deputy chair Catriona Lowe said businesses are legally obligated to describe sales offers accurately and cannot mislead consumers with ‘small print’ disclaims and terms and conditions.
“We allege these claims misled consumers that all goods in the physical or online store were discounted, or that the discounts were greater than was actually the case,” she said.
“Advertisements that talk about ‘sitewide’ or ‘storewide’ sales or promise discounts ‘off everything’ should deliver what customers expect, and not be used by retailers to hook consumers under false pretences.”
The ACCC took particular issue with Michael Hill’s online advertisement that promoted a sale with the phrase “Member Event 25% off Sitewide.”
“Michael Hill’s statement may have misled consumers, and contravened the Australian Consumer Law, because some of the products in its online store were not part of the sale and were not discounted,” Lowe explained.
She added: “During the EOFY sales, retailers should be aware that we will continue to keep an eye on sales promotions to ensure consumers are not being misled, and retailers may face enforcement action if they make sales representations that contravene the Australian Consumer Law.”
Homewares retailer GRBA and Hairhouse Warehouse were also issued with infringement notices.
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