Kogan fined $32,400 for false and misleading advertising.

Tuesday , 19, January 2016 Leave a comment

Online retailer Kogan.Com Pty Ltd (Kogan) has paid penalties totaling $32,400 following issue of three infringement notices by the Australian Competition and Consumer Commission for false and misleading advertising.

The ACCC issued the infringement notices over false or misleading representations about the price of three computer monitors advertised by Kogan during a Fathers’ Day promotion on its eBay store, in contravention of the Australian Consumer Law.

As part of the Fathers’ Day promotion in 2015, Kogan advertised on its eBay store that consumers would receive a 20% discount on certain computer monitors if they were purchased between 24th and 29th August 2015.

However just before the promotion started Kogan  increased the prices of the three computer monitors featured on its eBay store,  as a result consumers received a  9% discount off the previously advertised prices for each of the three computer monitors.

Soon after the promo ended the advertised prices of the three computer monitors returned to the lower prices offered on Kogan’s eBay store before the promotion commenced.

Basically Kogan tried to swindle people into believing they were getting a 20% discount when in fact it was just 9%.

“It is simply unacceptable for businesses to raise prices before applying a discount in order to give consumers the misleading impression that they are obtaining a larger percentage discount than is actually the case,” ACCC Acting Chair Dr Michael Schaper said.

“Truth in advertising and consumer issues in the online market place are both current enforcement priorities,” Dr Schaper said.

Source : ACCC

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