Major Australian retailers fined for dodgy Black Friday sales

Amid the Black Friday spending bonanza, three major Australian stores have been fined for misleading sales.

Three major Australian retailers have been fined for dodgy Black Friday sales.

Jeweller Michael Hill, homewares retailer Global Retail Brands Australia, and Hairhouse Online have each paid a $19,800 fine following infringement notices from the Australian Competition and Consumer Commission (ACCC), the regulator says.

Paying fines does not amount to an admission of breaking the Australian Consumer Law.

The consumer watchdog issued the infringement notices after finding the retailers were selling non-discounted items despite their website homepages spruiking “sitewide” sales or sales on “everything”.

The discrepancies were found during a sweep the ACCC did of Black Friday sales, the period at the end of November where retailers typically have large discounts.

Black Friday sales in Australia have extended to the whole of November, not just the end of the month. Picture: NewsWire / Luis Enrique Ascui

“Businesses that make false discount claims not only risk misleading consumers, they also compete unfairly against other businesses which correctly state the nature of their sales,” ACCC deputy chair Catriona Lowe said.

ACCC analysis shows that while Michael Hill had a prominent banner on its homepage promoting a “member event” 25 per cent off sitewide sale, some items were not discounted.

“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,” Ms Lowe said.

A Michael Hill spokeswoman told NewsWire that 96 per cent of items were discounted 25 per cent.

The sale ad was on display for three days, the spokeswoman said.

“Michael Hill fully co-operated with the ACCC in its investigation and reiterates its commitment to transparency in all dealings with its customers and compliance with the Australian Consumer Law.”

Global Retail Brands Australia owns MyHouse, which has 28 physical stores in Australia, plus a range of similar homewares businesses.

Splashed across the MyHouse e-store late last year was an ad saying “everything” was subject to a Black Friday sale with discounts up to 60 per cent. The ad also promised an “extra” 20 per cent off.

“We say this was misleading because the extra 20 per cent discount was not available on all of its products,” Ms Lowe said.

“Retailers need to ensure that their advertising makes it clear to consumers which products are discounted and by how much.”

Hairhouse Online promised 20 to 50 per cent off “sitewide” for Black Friday sales. More than one-quarter of items on the site were not discounted at all, the ACCC says.

The haircare retailer is owned by Melbourne-based The Hairhouse Warehouse.

Australians spent about $7bn on the Black Friday sales in 2024.

NewsWire has contacted Global Retail Brands Australia and Hairhouse for comment.

Originally published as Major Australian retailers fined for dodgy Black Friday sales