The Australian Competition and Consumer Commission has instituted legal proceedings in the Federal Court, Adelaide against The Jewellery Group Pty Ltd, the company which operates the Zamel's retail jewellery chain.
The ACCC alleges that in advertising 44 jewellery items in its May 2010 catalogue, Zamel's misrepresented the savings to be made by consumers by purchasing the items during the catalogue sale period.
The ACCC also alleges that for 20 of those items, between November 2008 and January 2010, Zamel's also misrepresented the savings to be made by consumers in one or more catalogues and a flyer.
By using statements such as "$99 $49.50" or "Was $275 Now $149" the ACCC alleges Zamel's represented consumers would save the difference between the higher and lower price if the items were purchased during the sale period when that was not the case.
It is alleged that Zamel's has engaged in conduct in contravention of sections 52 and 53(e) of the Trade Practices Act 1974*.
The ACCC is seeking:
- declarations that Zamel's engaged in conduct in contravention of the Act
- a court order that the company publish a corrective advertisement in relation to the conduct
- a court order that the company implement a compliance and training program
- penalties for the conduct that occurred in May 2010, and
- costs.
A directions hearing for this matter is listed before Justice Lander on 19 April 2011 in the Federal Court, Adelaide.
*On 1 January 2011 as part of Australian Consumer Law amendments the Trade Practices Act 1974 was renamed the Competition and Consumer Act 2010.