Franklin Mint mail order advertising misled: ACCC

Advertising by commemorative chinaware manufacturer Franklin Mint Pty Ltd misled consumers about its products' limited availability, the Australian Competition and Consumer Commission believes.

Franklin Mint is the United States and Australian market leader in mail order souvenirs and commemorative chinaware, Acting ACCC Chairman, Mr Allan Asher, said today. Typical products include porcelain figurines of puppies and dolphins, and models of 'celebrity' figures such as Jacqueline Kennedy and The Three Stooges.

After investigation of consumer complaints, the ACCC came to the view that many of its advertisements were misleading as they generally included the claim: 'Issued in a hand-numbered limited edition which will close forever after just 45 firing days.'

The ACCC considers this, and other statements, misled consumers into believing that Franklin Mints collectables are produced in small numbers and are likely to increase in value and esteem.

In fact, as Franklin Mint acknowledged, firing days does not refer to consecutive days of production. These firing days might be spread out over months or years, in some cases producing thousands of identical items.

Franklin Mint has cooperated fully with the ACCCs investigations. It agreed to be bound for two years by Court-enforceable undertakings which will see it:

survey its customers, and offer refunds to those who believe they have been misled; in future, use wording in advertisements which indicates that large numbers of certain pieces may sometimes be produced, over months or sometimes years; and develop a comprehensive trade practices compliance program.

As consumers cannot readily discuss their purchases with mail order companies, they are entitled to a very high standard of clear explanation in the advertisements and catalogues of those firms, he said.