An Australian Competition and Consumer Commission investigation has led to the Director of Public Prosecutions instituting prosecution proceedings yesterday against musical instrument retailer Allans Music Group Pty Ltd. It is alleged that the company made false or misleading representations concerning the price of goods advertised in its Christmas 2000 catalogue.
It is alleged that copies of the catalogue were distributed to homes in Adelaide, Melbourne, Ballarat, Sydney and Brisbane, as well as through Allans Music shops in those cities, and to people on the Allans Music mailing list.
The ACCC has alleged that Allans Music breached section 53(e) of the Trade Practices Act 1974 by making false or misleading representations with respect to prices. The alleged representations concerned the price of musical instruments and recording and other equipment and arose from statements "WAS $x, NOW $y". For example, Allans Music allegedly represented that the price of a Gibson 1960 Les Paul Classic guitar "WAS $4499, NOW $3495".
The ACCC alleges that such a representation suggests that, in the period immediately prior to December 2000, the item had been sold by Allans Music at the "WAS" price and was available for purchase at the "NOW" price for the period of the sale, thereby enabling a price saving which amounted to the difference between the "WAS" and "NOW" price.
The ACCC alleges that this representation was false or misleading in respect of 18 of the advertised items because Allans Music had not sold them at the "WAS" price since January 2000 or at all during that year.
It is now for the court to determine whether the ACCC's allegations are correct.
Allans Music ceased using this style of advertising once the ACCC drew its concerns to the company's attention.
A directions hearing for this matter is listed for 9 a.m. and Wednesday, 12 June 2002 in the Federal Court, Adelaide.