Thursday, 23 May 2019 10:20

ACCC takes Kogan to court over alleged misleading ads Featured

By
ACCC takes Kogan to court over alleged misleading ads Image by Gerd Altmann from Pixabay

The Australian Competition and Consumer Commission has taken online retailer Kogan to the Federal Court, alleging that the company indulged in misleading advertising about a 10% discount promotion in breach of Australian Consumer Law.

In a statement on Thursday, the ACCC said Kogan had run an online promotion between 27 and 30 June last year in which a 10% discount was offered on most products using the discount code "TAXTIME." The promotion was also sent to consumers by email and SMS.

The competition watchdog said it alleged that these advertisement were false or misleading as the company had upped the prices of more than 600 products just before the promotion, with most prices being marked up by at least 10%.

“We allege that Kogan’s advertisements were likely to have caused consumers to think they were getting products below their usual prices. In fact, Kogan had inflated product prices which we say created a false impression of the effective discount,” ACCC commissioner Sarah Court said.

As 30 June approached, the ACCC said Kogan’s email advertisements used statements such as “48 hours left!” and “Ends midnight tonight!” which it alleged gave the impression that consumers only had a limited time to purchase these products at the “discounted” prices.

Soon after the promotion period ended, Kogan lowered prices of products offered as part of the promotion, many back to their pre-promotion prices.

“Businesses must not make claims to consumers about discounts or sales unless they are offering genuine savings,” Court said.

The ACCC has sought penalties, injunctions, declarations, corrective notices and costs from Kogan.

In a statement to the ASX, Kogan denied the allegations and said it would defend the charge in court.

CHIEF DATA & ANALYTICS OFFICER BRISBANE 2020

26-27 February 2020 | Hilton Brisbane

Connecting the region’s leading data analytics professionals to drive and inspire your future strategy

Leading the data analytics division has never been easy, but now the challenge is on to remain ahead of the competition and reap the massive rewards as a strategic executive.

Do you want to leverage data governance as an enabler?Are you working at driving AI/ML implementation?

Want to stay abreast of data privacy and AI ethics requirements? Are you working hard to push predictive analytics to the limits?

With so much to keep on top of in such a rapidly changing technology space, collaboration is key to success. You don't need to struggle alone, network and share your struggles as well as your tips for success at CDAO Brisbane.

Discover how your peers have tackled the very same issues you face daily. Network with over 140 of your peers and hear from the leading professionals in your industry. Leverage this community of data and analytics enthusiasts to advance your strategy to the next level.

Download the Agenda to find out more

DOWNLOAD NOW!

Sam Varghese

website statistics

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

VENDOR NEWS & EVENTS

REVIEWS

Recent Comments