The Australian Competition and Consumer Commission has accepted court enforceable undertakings from two retailers of window blinds and awnings, Image Blinds and Premier Blinds & Awnings, over misleading 'discount' advertising promotions.
Image Blinds and Premier Blinds & Awnings each admitted that advertisements continuously offering discounts of 25 per cent to 40 per cent off recommended retail prices of various window blinds and awnings were misleading or deceptive.
Customers were generally not making the advertised savings because the products were normally not sold at the higher price before or after the "sale".
ACCC Chairman Graeme Samuel said retailers must make sure that savings advertised during sales are genuine and that the higher price actually applied prior to the sale for a reasonable period of time.
"Discount advertising is a powerful marketing tool," Mr Samuel said. "Bargains offered during sales encourage consumers to buy because they think will make real savings if they act quickly.
"This is a timely reminder to all retailers to ensure that any 'sales' or 'discounts' offered over the Christmas and New Year period must represent genuine savings to consumers," he said.
If a retailer makes a price comparison, the higher price must be the genuine pre-sale price - they cannot merely make up a recommended retail price. Retailers also cannot run a discount promotion for an indefinite period or if they have never sold the product for the higher price represented in the advertisement.
Image Blinds and Premier Blinds & Awnings have provided the ACCC with court enforceable undertakings to cease the conduct. Each company is also required to publish corrective notices and implement a trade practices compliance program.
Earlier this year, the ACCC took action against a number of bedding retailers for similar misleading price representations.
The ACCC will continue to be alert and take action against traders who engage in misleading two-price advertising. ACCC guidelines on price comparison or 'two-price' advertising are available on the ACCC's website.
A copy of both undertakings will also be available on the ACCC website.