ACCC penalizes Australian retailers for misleading discount claims

The Australian Competition and Consumer Commission (ACCC) has issued several penalties against retailers for misleading discount claims during sales periods.

Electronics retailer digiDirect paid $99,000 in penalties after admitting that its website used “price slashed” claims and strikethrough pricing that did not reflect actual previous prices. The regulator found that the higher prices crossed out on product pages were rarely advertised or charged, making the perceived savings illusory.

Additionally, furniture retailer James Lane and play equipment retailer Vuly were penalized nearly $60,000 for misleading Black Friday promotions. The ACCC alleged that both companies claimed discounts were for a limited time, but the sales continued past the advertised end dates. Vuly specifically used countdown timers that reset to new end dates once the original sale expired, creating a false sense of urgency for consumers.