Full Federal Court of Australia rejects ACCC's and Prouds' appeals regarding 'was/now' two-price advertising
On 15 February 2008 Justice Moore found that some 'Was/Now' advertising published by Prouds in two 2006 catalogues was misleading in breach of the Trade Practices Act 1974.*
The ACCC appealed some aspects of the decision and Prouds cross-appealed in relation to the findings that its catalogue advertising was misleading and deceptive.
The Full Federal Court yesterday rejected both appeals.
The ACCC is considering the Full Court's decision.
Release # MR 376/08
Issued: 24th December 2008
Background
*The advertising was in the form of price comparisons such as "Was $199 / Now $99.50" and appeared in Prouds' February 2006 Summer of Love catalogue and its May 2006 Love You Mum catalogue. Numerous jewellery items were advertised in this way in each of these catalogues. The case related to the 'Was/Now' price advertising of the 17 items that appeared in both catalogues.
Justice Moore concluded that the 'Was/Now' advertising conveyed to consumers that the jewellery items had been offered for sale for a reasonable period immediately before the catalogue promotion at the 'Was' price.
He found that each of the 17 items had not in fact been offered at the 'Was' price in that period and concluded that the 'Was/Now' advertising of each of the items in both catalogues was misleading.
