Further warning on misleading cash-back offers after Johnson & Johnson promotion

Further warning on misleading cash-back offers after Johnson & Johnson promotion

A $2 cash-back offer on packets of 20 regular and super Stayfree Meds tampons has led to personal products giant Johnson & Johnson Pacific Pty Ltd honouring the spirit of the promotion and offering the Australian Competition and Consumer Commission legally enforceable undertakings.

The ACCC found that material conditions relating to the cash-back offer were concealed.

"The offer failed to adequately disclose to consumers that they had to buy two distinctly different Johnson & Johnson products to claim any cash back," ACCC Chairman, Professor Allan Fels, said today. "It failed to adequately disclose the promotion's closing date and a limit of one claim per household. "Despite a recent news release in which the ACCC specifically warned companies and promoters using cash-back promotional campaigns to carefully check that consumers are not misled about their rights, the ACCC has again been obliged to take action.

"In particular the ACCC stressed that material conditions must be disclosed to consumers at the point of sale.

"In this latest instance the promotional sticker on the packaging of the product offered a $2 cash back on 'new Meds'. Concealed on the reverse of the sticker was an illustration which showed 'new Meds' to be an entirely different Johnson & Johnson product than the product to which the sticker was attached. "In fact, a consumer had to purchase the other product ('new Meds'), send in the barcode from its packaging plus the cash back sticker to claim $2. "Johnson & Johnson has taken prompt action to remove the stickers from the packets on supermarket and pharmacy shelves. It will honour all claims made by consumers who send in a barcode from either the packaging to which the sticker was attached, or from the 'new Meds'.

"Consumers who bought the product to which the sticker was attached will not have to purchase 'new Meds' to make a cash-back claim. Johnson & Johnson has advertised in daily newspapers in each State and Territory to advise consumers of their rights to make claims.

"I hope this is the final warning the ACCC has to give to companies and promoters concerning such offers. It should also serve as a warning to consumers that cash-back offers are not always what they appear to be."

Further information Professor Allan Fels, Chairman, (06) 264 2829 or pager (016) 373 536