ACCC alleges misleading advertising by Target

The Australian Competition and Consumer Commission has instituted proceedings against Target Australia Pty Ltd in the Federal Court, Perth, alleging false, misleading and deceptive conduct in television and newspaper advertising of its discount sales.

The ACCC alleges that Target's '25% off every stitch of clothing' and '15%-40% off housewares' television advertising:

• promoted a category of goods available at discounted prices without disclosing, or without adequately disclosing that certain items were excluded from the sale and therefore were not available at a reduced price
• failed to inform that its rainchecks were not available on goods at these sales; and
• Target newspaper advertising for the same discount sales:
• promoted a category of goods available at discounted prices without disclosing or without adequately disclosing that certain items were excluded from the sale and therefore not available at a reduced price; and
• failed to inform or failed to adequately inform that its rainchecks were not available on goods at these sales.

The ACCC alleges Target breached section 52 of the Trade Practices Act 1974, which prohibits conduct by a business that is misleading and deceptive, or likely to mislead or deceive, and section 53(e) of the Act which prohibits a business from making false and misleading claims about the price of goods.

The ACCC is seeking court orders including:

• findings of fact;
• a declaration that Target has breached the relevant provisions of the Act;
• injunctions restraining Target from advertising in the same way in the future;
• orders that Target publish notices on television and in newspapers advising of the conduct;
• an order requiring Target to review its trade practices compliance program; and
• costs.

A directions hearing for the matter is listed for 23 October 2000 in the Federal Court, Perth.