The Australian Competition and Consumer Commission has accepted a court-enforceable undertaking from Parke Muir's Pty Ltd, trading as Ross Parke The Good Guys Discount Warehouses, about its use of 'WAS' price advertising.
Parke Muir's advertised in the Geelong Advertiser on 7 May 2004 a special promotional sale held on that day. The advertisement stated that the price for a GW712 model Fisher & Paykel washing machine 'was $1,099'. After inquiries by the ACCC, Parke Muir's reviewed its sales records for that product and could not find a record of that product being sold for $1,099.
The ACCC expressed its concern to Parke Muir's that the advertisement was possibly misleading to consumers and therefore in contravention of the Trade Practices Act 1974.
The acceptance of the court-enforceable undertaking resolves the ACCC's concerns that Parke Muir's may have engaged in misleading conduct in breach of the Act. Similar concerns had been expressed in an earlier investigation.
"Comparative pricing can be a powerful marketing tool and takes many forms, including two-price advertising, such as 'WAS/NOW' pricing", ACCC Chairman, Mr Graeme Samuel, said today.
"However, if it is done, retailers must take care that their price comparisons are not misleading or deceptive.
"Parke Muir's has apologised to its customers for any inconvenience it may have caused."
Parke Muir's has given court-enforceable undertakings that it will:
- not advertise a 'WAS' price for a product unless it has sufficient evidence to demonstrate that such an advertisement is not misleading
- publish in the Geelong Advertiser an apology notice and
- establish a trade practices compliance program, which will be independently audited by a suitably qualified compliance professional.