ACCC institutes proceedings against Harris Scarfe Australia Pty Ltd

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Adelaide against Harris Scarfe Australia Pty Ltd alleging that it engaged in misleading conduct in promoting a storewide sale.

In October 2006, Harris Scarfe advertised on television in Victoria a "20%-60% OFF STOREWIDE" sale and distributed catalogues in South Australia, Victoria and Tasmania to promote the sale. The ACCC alleges that this advertising was misleading because Harris Scarfe was not offering:

• a discount off all goods in its stores, and
• a minimum of 20 per cent off all goods in its stores.

Further, the ACCC alleges that the catalogue included photographic images of various products under banners stating a specific discount when some of those goods were not discounted by the stated percentage.

The ACCC is seeking:

• declarations that Harris Scarfe contravened sections 52 and 53(e) of the Trade Practices Act 1974* 
• injunctions
• corrective advertising
• review and revision of Harris Scarfe's internal business operations
• maintenance of Harris Scarfe's compliance program, and
• costs.

The matter has been listed for a directions hearing in the Federal Court, Adelaide, at 9:30 a.m. on 26 November 2007 before Justice Mansfield.