A national bedding and furniture retailer, Forty Winks, will correct its use of comparative pricing following an Australian Competition and Consumer Commission investigation.
Forty Winks (Franchising) Pty Ltd, which has 85 outlets across Australia, has provided the ACCC with court-enforceable undertakings.
Advertisements appearing in Forty Winks' Celebration Sale catalogue featured a number of items of bedding and furniture and quoted a number of "$ savings" by comparing Forty Winks' "normal ticketed price" with the discounted price.
However, the claimed savings for the advertised products may have been overstated because Forty Winks usually sells its products at less than the ticketed prices. While the catalogue contained a very fine print disclaimer stating that products usually sell below the normal ticketed prices, this disclaimer was not prominent enough to qualify the overall impression of the catalogue.
Forty Winks offered the undertakings in consideration of the ACCC's concerns that the "Save up to $1000" statement on the front page of its Celebration Sale catalogue and its quoted savings throughout the catalogue may have misled consumers by creating an impression they were obtaining a significant saving.
As part of the undertakings, Forty Winks will only advertise price reductions for products calculated by reference to the usual selling prices for those products at its stores, unless a clear and prominent explanation specifies the alternative price reference point used for the advertised price reduction. In addition, Forty Winks will implement a robust trade practices compliance program.
"The ACCC was concerned consumers were being misled about savings claimed on some products sold at Forty Winks outlets", ACCC Chairman, Mr Graeme Samuel, said today. "The ACCC views misleading two price comparative advertising very seriously.
"Price savings have a significant influence on a consumer's purchasing decision. Consumers are entitled to expect retailers are fairly representing savings in their advertising".