A Victorian sporting goods retailer will correct its use of comparative pricing following an Australian Competition and Consumer Commission investigation.
Sheldon Park Pty Ltd, which has three Sportsmart outlets, located in Moorabbin, Northcote and Noble Park, has provided the ACCC with court-enforceable undertakings.
"The ACCC was concerned consumers were being misled about savings claimed on some products sold at Sportsmart", ACCC Chairman, Mr Graeme Samuel, said today.
"Advertisements appearing in Sportsmart catalogues and intermittently in the Melbourne edition of the Trading Post and the Herald Sun, represented five lines of treadmills (various brands) and 56 styles of footwear (various brands) by comparing Sportsmart's price with the recommended retail price (RRP).
"But the advertised products had never been sold at Sportsmart outlets at the RRP so the savings could not be claimed".
Sheldon Park admitted it had never sold the specified products at its Sportsmart outlets at the RRP and that this may have misled consumers by creating an impression they were obtaining a significant saving.
"As part of the undertakings, Sheldon Park will not use two-price comparative advertising where it has not previously sold the specified products at the higher advertised price recently and at that price for a reasonable period of time. It will not refer to a RRP in its two price comparative advertising where the goods are not available regularly in the marketplace at that RRP.
"Sheldon Park will display public disclosure notices for four weeks in each of its Sportsmart outlets and publish on four separate occasions over a month the same notice in the Melbourne edition of the Trading Post and Herald Sun".
Sheldon Park will implement a robust trade practices compliance law program. The program will require Sheldon Park to:
- conduct a risk assessment of its current procedures identifying any other potential risks of breaching the Trade Practices Act 1974
- require relevant staff and management to undertake training focusing on Part V of the Act (consumer protection provisions), and
- have all advertising and promotional material reviewed to ensure it is compliant with Part V of the Act prior to its dissemination to the public.
"The ACCC views misleading two price comparative advertising very seriously", Mr Samuel said. "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".