Mitre 10 Australia Limited has admitted that aspects of its television and radio advertising for an annual clearance sale were misleading and deceptive. The advertising stated that it was a "15% Off Everything" sale.
In an Australian Competition and Consumer Commission Federal Court action, it was alleged that Mitre 10's "15% Off Everything" television and radio advertising campaign promoting its Annual Clearance Sale held between 15-17 June 2001 failed to disclose or to disclose adequately that not everything at Mitre 10 outlets was reduced by 15 per cent.
The ACCC alleged that Mitre 10 Australia Limited breached section 52 of the Trade Practices Act 1974, which prohibits conduct that is misleading and deceptive, or likely to mislead or deceive, and section 53(e) of the Act, which prohibits a business from making false and misleading claims about the price of goods.
By consent of the parties, the proceedings instituted by the ACCC have been settled.
The Federal Court made declarations that Mitre 10 Australia Limited caused the broadcast on television and radio advertisements the claim "15% Off Everything at Mitre 10" and failed to disclose adequately that not everything was reduced by 15 per cent.
Mitre 10 Australia Limited gave undertakings to the court that it would not, for two years, advertise goods at a discounted price when no discount applies to some or all of those goods, or without clearly and prominently disclosing any qualification or exclusion relating to the availability of that price for those goods.
By agreement with the ACCC, Mitre 10 Australia Limited agreed to contribute to ACCC's court costs.
"The misleading advertising occurred in June 2001 over a three day period and there has been no repetition of the conduct since", ACCC Chairman, Professor Allan Fels, said today. "Mitre 10 and its directors have co-operated in settling this matter, avoiding the need for a trial.
"Nevertheless, the case illustrates the care that companies need to take when making headline claims such as "15% Off Everything" if some goods are excluded. Companies must ensure that prominent claims are either self-explanatory on their face or are appropriately and prominently clarified if there are important exceptions".