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Video Ezy has given a court enforceable undertaking under section 87B of the Trade Practices Act 1974 to the ACCC, after it raised concern that the overall impression created by "price guarantees” in its television advertisements were likely to have breached section 52 and 53(e) of the Trade Practices Act 1974.
In October 2007, Video Ezy changed its television commercials to include the statement "Cheapest price in Australia, guaranteed”, which featured prominently in its advertisements.
This statement was either qualified in fine print by “Or we’ll beat any lower advertised price” (the “qualification”), or not at all.
Kerandis Proprietary Limited operates 3 furniture retail outlets in Melbourne under the name of Urban Rhythm Furniture.
In the course of a store-wide Christmas promotion in December 2007, Kerandis offered all the furniture items in its stores at a 12% discount using comparative (strike through) two-price representations.
These representations were in the form of price comparisons such as “$2,240 $1795” where items were offered at a price which was compared to a previous crossed out higher selling price.
In the course of the Christmas promotion, Kerandis introduced new items into its stores which had never previously been sold by Kerandis and immediately offered them at a discount using comparative two-price representations.
Kerandis acknowledged that it had used comparative two-price representations in this manner in past sales.