The Australian Competition and Consumer Commission has initiated criminal proceedings in the Federal Court alleging that Gold Coast based Carrerabenz Diamond Industries Pty Ltd, and its managing director, Mr Shahid Chaudhary, used misleading price comparisons in advertising diamond clearance sales across four Australian States.
The ACCC alleges that Carrerabenz advertised a range of diamonds for sale to the public using comparative pricing which implied that consumers could obtain a substantial saving amounting to the difference between the advertised "Usual Mark.Price" and the lower "Crazy Price" at which the diamonds were offered for sale.
The ACCC alleges that the diamonds in question had not previously been offered for sale to the general public at the higher "Usual Mark.Price".
The diamond sales in question were held at exhibition venues in Melbourne, Sydney, Perth and Adelaide over a three month period in 2003.
The ACCC alleges that Mr Chaudhary was knowingly concerned in the company's conduct.
The matter is listed for mention on 8 February 2006 at the Federal Court, Brisbane.