Furniture chains pay penalties for making alleged misleading claims
Four well-known furniture chains have come under fire for allegedly advertising sham ‘was/now’ sales prices. An Australian Competition and Consumer investigation has resulted in penalties.
VIC News
Don't miss out on the headlines from VIC News. Followed categories will be added to My News.
Four well-known furniture chains have copped penalties for allegedly using dodgy ‘was/now’ price claims.
Retailers Plush – Think Sofas Pty Ltd (Plush); Koala & Tree Pty Ltd (Koala Living); ESR Group Holdings Pty Ltd (Early Settler); and Oz Design Furniture Pty Ltd have each paid $12,600 after being issued with an infringement notice.
The Australian Competition and Consumer Commission said it had reasonable grounds to believe that false or misleading representations were made regarding savings on certain items.
The consumer watchdog said statements such as ‘was $2599, now $2049’, or ‘$799, save $200’, were used when the item had never been advertised at the ‘was’ price, or was only advertised at that price for a short period.
For example, one retailer advertised a Roller Ottoman at $539 with the words ‘save $360’, even though it was available for $449 directly before the sale.
Another advertised an occasional chair with the words ‘$799, save $200’ when its usual price for the previous six months was $699, the watchdog said.
ACCC commissioner Sarah Court said: “Consumers rely on comparative pricing to find the best deal available. If there are no genuine savings, businesses are misleading consumers.
MORE NEWS:
MUM FEARED FOR GIRL’S LIFE IN TRICK OR TREAT GONE WRONG
CON USED CELEBS TO SELL SHAM CHARITY TICKETS
BLOCK STAR REFUSED BAIL OVER ALLEGED DATING APP EXTORTION
“Using claims of false savings to induce consumers to purchase products also disadvantages competing retailers which are complying with the law.”
“The ACCC has taken this enforcement action to send a strong message to retailers that they must ensure that any claimed savings are accurate and based on a ‘before’ price which has been offered for a reasonable period when using comparison advertising,” Ms Court said.