Godfreys Franchise Systems Pty Ltd (Godfreys) is a franchisor and a retailer of vacuum cleaner and cleaning products with franchised stores throughout Australia and New Zealand.
In 2007, Godfreys promoted a Nilfisk A100 vacuum cleaner (Nilfisk vacuum cleaner) which was new to the Australian market and a model exclusively sold by Godfreys.
Godfreys has acknowledged that by promoting the Nilfisk vacuum cleaner as “$124.50, NILFISK, HALF PRICE!” and “Clean Up Sale! Nilfisk $249 ½ Price $124.50” in Western Australia where it was not previously offered for sale in the marketplace at half price prior to the promotion, it may be misleading and deceptive to represent that consumers could make a saving of 50% when they purchased the vacuum cleaner for $124.50.
Godfreys has acknowledged the ACCC’s concerns that its conduct may have misled consumers and that such conduct may have been in contravention of section 52 the Trade Practices Act 1974 (TPA).
The ACCC has accepted undertakings from Godfreys pursuant to section 87B of the TPA to address the conduct.
Godfreys has undertaken to:
refrain from referring to prices for vacuum cleaners in promotions where those vacuum cleaners have not been readily available from Godfreys or in the marketplace in reasonable quantities for a reasonable period of time immediately prior to the promotions;
request that the Godfreys stores involved in the conduct display an information notice about the conduct;
publish a notice about the conduct in the next Godfreys catalogue distributed in the area of the Godfreys stores involved in the conduct; and
establish a compliance program to assist Godfreys in preventing future breaches of the TPA of this nature.
