A clear warning has been sounded to all retailers to ensure that their price advertising is not misleading. The Australian Competition and Consumer Commission has recently raised the issue with curtain and blind retailer Kresta Holdings Limited. "Retailers of all goods, including curtains and blinds, must ensure their advertising is accurate", ACCC Chairman Professor Allan Fels warned today.
ACCC investigations showed that from December 1995 to March 1996 Kresta offered Sunban, Stardust and Platinum vertical blinds to in home customers as Buy One Get One Free. "But inquiries showed that the price of the blinds had been increased to coincide with the introduction of the promotion," Professor Fels said. "Consumers could reasonably expect the prices charged during the Buy One Get One Free promotional period to be based on those prices prevailing immediately before the offer.
"Because of the combination of the price rise and special offer, consumers may have believed they were receiving a greater discount than may have been the case. "Promotions such as Buy One Get One Free can be innovative marketing tools, but where prices are increased to coincide with such promotions, the conduct may be viewed as misleading.
"Businesses who use inaccurate or misleading price comparisons gain an unfair competitive advantage and run the risk of breaching the Act," Professor Fels said. "Kresta has acknowledged that it may have breached the Act and has co-operated fully. Kresta has provided legally enforceable undertakings to the ACCC, including a compensation scheme, and has developed a detailed trade practices compliance program to ensure compliance with the Act. I encourage other retailers to do the same."
Businesses needing information on selling practices should obtain the ACCC's guide, Advertising and Selling. It costs $10 and is available from all ACCC offices.
Further information Professor Allan Fels, Chairman, pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808 (w)
ACCC investigations showed that from December 1995 to March 1996 Kresta offered Sunban, Stardust and Platinum vertical blinds to in home customers as Buy One Get One Free. "But inquiries showed that the price of the blinds had been increased to coincide with the introduction of the promotion," Professor Fels said. "Consumers could reasonably expect the prices charged during the Buy One Get One Free promotional period to be based on those prices prevailing immediately before the offer.
"Because of the combination of the price rise and special offer, consumers may have believed they were receiving a greater discount than may have been the case. "Promotions such as Buy One Get One Free can be innovative marketing tools, but where prices are increased to coincide with such promotions, the conduct may be viewed as misleading.
"Businesses who use inaccurate or misleading price comparisons gain an unfair competitive advantage and run the risk of breaching the Act," Professor Fels said. "Kresta has acknowledged that it may have breached the Act and has co-operated fully. Kresta has provided legally enforceable undertakings to the ACCC, including a compensation scheme, and has developed a detailed trade practices compliance program to ensure compliance with the Act. I encourage other retailers to do the same."
Businesses needing information on selling practices should obtain the ACCC's guide, Advertising and Selling. It costs $10 and is available from all ACCC offices.
Further information Professor Allan Fels, Chairman, pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808 (w)