 |
|
|
If you Snooze you lose
Posted: 24/11/2009
Bedding retailer Snooze has conceded that its advertising campaign in October 2009 was likely to be misleading and deceptive, in breach of the Trade Practices Act 1974 (Cth) ("TPA").
In October 2009, Snooze advertised many of its products in the form 'was $___, now $___'. An audit by the Australian Competition and Consumer Commission (“ACCC”) revealed that in some instances, the 'was' price for a particular product was, in fact, higher than the price at which that product had been sold by Snooze in the reasonable lead up to the October 2009 advertising campaign.
According to the ACCC, a 'was' price must be genuine and have applied prior to the sale for a reasonable period of time.
In response to the ACCC’s concerns, Snooze has agreed to provide court-enforceable undertakings, write a letter of apology to consumers who purchased an affected product enclosing a $50 gift voucher, publish corrective notices in Snooze stores, publish an information notice and establish a trade practices compliance program.
It is apparent from Snooze's recent experience that falling foul of the advertising provisions in the TPA can result in substantial compliance burdens and costs, as well as generate unwelcome commentary about your brand. |
|
|
|
|
|
|
|
|
|
|
|
