Collingwood Football Club pays infringement notices for membership offer

20 August 2013

The Collingwood Football Club has paid two infringement notices, totalling $20,400, issued by the Australian Competition and Consumer Commission in relation to an advertisement promoting a membership offer.

The ACCC had reasonable grounds to believe the advertisement failed to prominently state the total minimum price payable for that offer in contravention of section 48 of the Australian Consumer Law.

The advertisement, which was published in the Herald Sun newspaper and emailed to more than 90,000 people in May 2013, offered consumers a three game membership and Collingwood guernsey for “only $20*”. In fact, the total price was $120 payable over six months. While the advertisement referred to a payment plan in fine print, it did not display the total price.

Under the Australian Consumer Law, advertisements that state part of the price of goods or services must also prominently state the total price payable by consumers.

“Consumers should know the real price of goods and services so that they are able to make informed purchasing decisions,” ACCC Chairman Rod Sims said.

“Advertisements that do not state the real price of goods or services have the potential to draw in consumers based on half-truths. All businesses must ensure that they comply with their obligations under the Australian Consumer Law.”

The payment of an infringement notice is not an admission of a contravention of the Australian Consumer Law. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.

The infringement notices are available on the infringements register

Published in Herald Sun 10/05/13


Background
The ACCC has previously issued infringement notices against companies for failing to prominently state the total minimum price payable or misleading consumers about the price of goods and services:

iiNet pays $102,000 infringement notice for Naked DSL bus advertisement
20 June 2013

FOXTEL pays infringement notices for Christmas sale advertising
13 April 2012

Dodo pays infringement notices
6 January 2011

Release number: 
MR 190/13
ACCC Infocentre: 

Use this form to make a general enquiry.

Media enquiries: 
Ms Meg Macfarlan - (03) 9290 1836 or 0408 995 408

Tags

Audience