Sports chain Rowe and Jarman Pty Ltd has moved to respond to Australian Competition and Consumer Commission concerns that its catalogue pricing may be misleading consumers.
The company, with stores in South Australia, Victoria, Northern Territory, Tasmania and Western Australia, was approached by the ACCC after receiving complaints that it had advertised gym equipment at prices reduced from a higher 'WAS' price, when in fact those items had not been sold at the higher 'WAS' price immediately prior to the sale.
Further, some items claimed savings compared to the 'RRP' (recommended retail price), but it was alleged that the items were not regularly priced at the 'RRP' anywhere in the marketplace and therefore created a false impression as to the extent of the discount.
Rowe and Jarman immediately ceased using the 'RRP' representation in advertising and will introduce an Advertising Compliance Plan to ensure that the savings claimed in future advertising are able to be substantiated.
The conduct may have been in breach of sections 52 and 53(e) of the Trade Practices Act 1974, which prohibits misleading conduct and false representations being made in relation to pricing.
"The ACCC is determined to put a stop to exaggerated savings in catalogue sales and so ensure consumers are able to make fair and informed decisions before they buy goods", ACCC Chairman, Mr Graeme Samuel, said today.
"Rowe and Jarman worked swiftly to deal with this issue. The outcome demonstrates the ACCC's commitment to resolving potential breaches of the Act without necessarily resorting to expensive and disruptive enforcement action".