Catalogue stationer corrects sales materials

A major direct marketer of stationery and office supplies, Viking Office Products Pty Limited, has provided court-enforceable undertakings to the Australian Competition and Consumer Commission after an investigation of the true levels of discounts the company offered.

Viking provided the undertaking after the ACCC raised with it serious concerns that consumers were being misled about the true level of discounts on offer in catalogues, which include Price Buster Catalogue, Buyers Guide and various specialist catalogues.

Viking's catalogues will now give customers clearer information about the discounts advertised in the company's various catalogues. Many customers are small to medium sized businesses.

An ACCC analysis of three products promoted in the Viking catalogues as having a 'Regular Price' revealed:

• the products were offered for sale to a significant number of customers at prices less than the 'regular price';
• sales of these products at the 'regular price' accounted for a very small percentage of the total sales of these products;
•  and the bulk of sales of these products had been made at prices substantially less than the 'regular price'.

The ACCC believes the representations constituted misleading or deceptive conduct in breach of section 52 of the Trade Practices Act 1974 and a false or misleading representation with respect to the price of goods in breach of section 53(e).

Where comparison is being made with previous or other prices charged by the company the claim of a discount will be misleading unless significant sales have recently or are currently being made at the higher price.

"Direct marketing to small business by catalogue, phone or over the Internet is increasing," ACCC Chairman, Professor Allan Fels, said today. "It is crucial that those businesses can rely on the claims made in catalogues, particularly on the important element of price.

"When discounts are advertised the basis for calculating the discount should be clear and prices used for comparison must be a genuine and relevant price".

In accepting the undertaking the ACCC noted Viking's commitment to review its compliance program that will be the subject of an independent audit.