Tank Broker Pty Ltd has paid three infringement notices totalling $19,800 issued by the Australian Competition and Consumer Commission for failing to prominently state the full price of rainwater tanks.
The conduct occurred between September 2010 and May 2011 when advertisements in The Advertiser and the Sunday Mail referred to ‘after rebate’ prices for rainwater tanks. By deducting the value of state and federal rebates, Tank Broker failed to state, or did not state in a prominent way, the full price to be paid by consumers.
Tank Broker also advertised rainwater tank kits for sale by comparing 'Now' prices with 'Was' prices despite the ‘Now’ price being the current price for the tank kits.
Tank Broker accepted that the represented savings between the two prices did not exist and that such conduct was likely to mislead customers.
In addition to the infringement notices, Tank Broker has provided a court enforceable undertaking to the ACCC admitting that its conduct was likely to have breached consumer protection laws. Further, Tank Broker has undertaken to:
- ensure that it specifies the single price for goods or services as a single figure and in a prominent way in its advertising
- not to use comparative price representations, such as two price advertising, unless the comparison drawn and discount offered is genuine
- publish corrective notices in The Advertiser and the Sunday Mail, and
- maintain a trade practices compliance program for three years
“This outcome serves as a warning to all businesses. Advertising a misleading price deceives consumers and disadvantages competitors. These undertakings and penalties indicate the ACCC’s commitment to preventing this practice” ACCC chairman Rod Sims said.