Three major retailers have paid $19,800 each in fines for allegedly misrepresenting the nature of their Black Friday sales.
Michael Hill Jeweller, Hairhouse Warehouse Online and MyHouse parent company Global Retail Brands Australia were fined by the Australian Competition and Consumer Commission (ACCC) for allegedly making false and misleading representations.
The ACCC undertook a sweep of dozens of sales advertisements for last year’s Black Friday and post-Christmas sales events, which identified concerns the ads misrepresented the size and scope of discounts being offered to consumers.
ACCC Deputy Chair Catriona Lowe said the watchdog alleged these claims misled consumers about the nature of the sales.
“Advertisements that talk about ‘sitewide’ or ‘storewide’ sales or promise discounts ‘off everything’ should deliver what customers expect, and not be used by retailers to hook consumers under false pretences,” Lowe said.
“Businesses are legally obliged to accurately describe their sale offers and should not use small point disclaimers to terms and conditions to disguise the real extent of their offers.
“During the EOFY sales, retailers should be aware that we will continue to keep an eye on sales promotions to ensure consumers are not being misled, and retailers may face enforcement action if they make sales representations that contravene the Australian Consumer Law.”
The ACCC said Michael Hill’s online advertisement promoted the sale with the words “Member Event 25% off Sitewide”.
“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,” Lowe said.
Meanwhile, the ACCC has alleged MyHouse store’s online Black Friday sale ad was misleading.
The ad displayed on the MyHouse website during the sale included a ribbon banner stating “Black Friday up to 60 per cent off sitewide + EXTRA 20% off” and a large headline graphic stating “Up to 60% OFF RRP EVERYTHING ON SALE” followed by the text “+EXTRA 20% OFF”.
“We say this was misleading because the extra 20 per cent discount was not available on all of its products,” Lowe said.
“Retailers need to ensure that their advertising makes it clear to consumers which products are discounted, and by how much.”
The watchdog fined Hairhouse Online for an online ad for its Black Friday sale with the statement: “SAVE 20% to 50% sitewide”.
The ACCC considered the statement misled consumers that all items on its website would be discounted by between 20 and 50 per cent for the duration of the Black Friday sale, when in fact more than a quarter of the products on its website were not included in the sale offer.
“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,” Lowe said.
The ACCC said the payment of the penalty is not an admission of contravention of Australian consumer law.
A spokesperson for Michael Hill Jeweller said the company remained committed to transparency and compliance with the Australian consumer law.
“Michael Hill fully co-operated with the ACCC in its investigation,” the spokesperson said.
“Michael Hill acknowledges the stringent approach which the ACCC expects businesses to take in relation to such representations, noting that 96 per cent of products were discounted by at least 25 per cent over that period.”
Hairhouse Warehouse Online and Global Retail Brands Australia have been contacted for comment.
