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False ads cost furniture chain $20,000
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False ads cost furniture chain $20,000
Posted Date: 11/01/2012
By Inside Retail


Furniture Galore has paid three infringement notices totalling $19,800 and provided a court enforceable undertaking to the Australian Competition and Consumer Commission for misleading consumers about advertised savings.

"In the midst of the summer sales period this is a very timely reminder to all retailers that they must ensure that any advertised savings are genuine and not misleading or deceptive," ACCC chairman Rod Sims said.

Between July 2010 and September 2011, Furniture Galore represented that certain goods in its catalogues and radio advertisements were 'on sale' at reduced prices or that customers could make 'savings' below the usual selling price.

Furniture Galore - which has 13 stores in Melbourne - admitted that it had not sold or genuinely offered those goods at the higher usual selling price for a reasonable amount of time immediately prior to making the savings representations or at all during the 16 months that the advertisements were published.

The Australian Consumer Law requires that representations about savings, reductions or discounts must reflect real and true savings for consumers.

"Two-price advertising is a powerful marketing tool designed to encourage consumers to make purchases during a sale period because the goods are cheaper than normal," Sims said.

"Retailers who overstate or misrepresent the value of savings offered to consumers during special sales or promotions risk financial penalties or court action by the ACCC."

Furniture Galore is required to publish various corrective notices in all Furniture Galore stores, on its website, in an industry magazine and in the Herald Sun newspaper. It will also implement a trade practices law compliance program.

The court enforceable undertaking will be available on the Public Register on the ACCC's website at www.accc.gov.au
Comments:

Saturday, January 14, 2012 by Geg
This is a form of trading that should be closely scrutinised. I do not believe that a business can be genuinely on sale perpetually and return a profit.
Friday, January 13, 2012 by Philip Endersbee
KATHMANDU - I agree with Tim about Kathmandu.
Would love to say what I really think about their model but I think the consumers are slowly figuring it out !!!!
Friday, January 13, 2012 by R from Sydney
About time . . . Furniture Galore have been doing this for years!!!
Thursday, January 12, 2012 by Tim
Kathmandu is the master of this practice.
Thursday, January 12, 2012 by Old Man
"Bait advertising" as it is called is rife especially with some well-known retailers while fake "was-now" ticketing is an established ticketing procedure in a retail chain with a very vocal owner.
Thursday, January 12, 2012 by Pixie
My son-in-law was caught in the same way by purchasing an item from Harvey Norman last year. When he sped over to the store, he was greeted with the following . . . "that item has just sold out, but if you pay now, we'll give you a bigger and better model - just be prepared to wait a few weeks." He got the item after a few weeks (once the order to the overseas supplier had been processed and received back on Australian soil). Moving forward? He's now shopping online and prefers it by far!
Thursday, January 12, 2012 by Michael
Perhaps they should look at Victoria Basement's wild claims especially when masterchef is on tv.
Thursday, January 12, 2012 by Al
I visited a store to purchase a catalogue item to be told that it would be available in about 12 weeks. I questioned the salesperson as to why this was the case and why it was in the catalogue if it was not in the country for another 12 weeks. They declined to comment. The impression I got was that they were taking orders from customers before hand and then placing the order with the manufacturer in China, but I have no proof of this. So when I read the above article, I was not surprised that this retailer was in breech of the ACCC. My experience only pushes the boundaries of very bad customer service, while the article above shows that this retailer is rather deceitful.

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