Kogan forced to pay $32,400 penalty by ACCC
- 18 January, 2016 10:12
Australian online electronic retailer, Kogan, has paid $32,400 in penalties following claims of misleading representations advertised during a Father’s Day promotion in 2015.
The penalties followed the issue of three infringement notices by The Australian Competition and Consumer Commission (ACCC) after the company falsely represented the price of three computer monitors.
The ACCC claims Kogan raised the prices of its monitors featured on its eBay store before the start of the promotion resulting in consumers receiving a nine per cent discount despite the retailers promotion offering a discount of 20 per cent.
Once the promotional offer ceased, the advertised prices of the monitors returned to the original, lower prices as shown on Kogan’s eBay store prior to the promotions commencement.
ACCC acting chair, Michael Schaper, said it was 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.
“Truth in advertising and consumer issues in the online marketplace are both current enforcement priorities,” he added.