ACCC institutes proceedings against Harbin Pty Ltd t/a Ray's Outdoors

The Australian Competition and Consumer Commission has instituted proceedings against Harbin Pty Ltd, trading as Ray's Outdoors, alleging that it engaged in misleading conduct in promoting its Elizabeth Opening Sale.

In March 2007, Ray's Outdoors placed a newspaper advertisement in The Advertiser promoting a sale for the opening of its Elizabeth Store in South Australia. The advertisement featured a Rio Grand barbeque for $99 with a strike-through price of $299.99.

The ACCC is alleging that this advertising misrepresents what customers would have paid for the barbeque immediately prior to the sale and what customers buying the barbeque during the sale would have saved.

The ACCC is seeking:

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

The matter has been listed for a directions hearing in the Federal Court, Adelaide, at 9:30 am on 14 January 2008 before Justice Finn.

* Section 52 prohibits misleading or deceptive conduct and section 53(e) prohibits false representations being made in relation to price.