ACCC enforcement against misleading retail discounts

The Australian Competition and Consumer Commission (ACCC) has taken action against several retailers for misleading advertising practices regarding discounts.

Initially, electronics retailer DigiDirect was fined $99,000 after admitting to breaching Australian Consumer Law. The ACCC investigation found the company used “strikethrough prices” to suggest significant savings on products that had not actually been sold at the higher listed prices. As part of a settlement, DigiDirect must pay the fine, remove the affected products, and publish a corrective notice on its website.

Following this, the ACCC expanded its penalties to include other retailers. Furniture retailer James Lane and play equipment retailer Vuly were penalized nearly $60,000 for misleading Black Friday promotions. The regulator alleged these companies claimed discounts were for a limited time when sales actually continued past advertised end dates. Vuly reportedly used countdown timers that reset to new dates once they expired, creating a “false sense of urgency” for consumers.