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.

DIGITAL MARKETING HAS NO SOCIAL DISTANCING OR TRAVEL RESTRICTIONS

As part of our Lead Machine Methodology we will help you get more leads, more customers and more business. Let us help you develop your digital marketing campaign

Digital Marketing is ideal in these tough times and it can replace face to face marketing with person to person marketing via the phone conference calls and webinars

Significant opportunity pipelines can be developed and continually topped up with the help of Digital Marketing so that deals can be made and deals can be closed

- Newsletter adverts in dynamic GIF slideshow formats

- News site adverts from small to large sizes also as dynamic GIF slideshow formats

- Guest Editorial - get your message out there and put your CEO in the spotlight

- Promotional News and Content - displayed on the homepage and all pages

- Leverage our proven event promotion methodology - The Lead Machine gets you leads

Contact Andrew our digital campaign designer on 0412 390 000 or via email andrew.matler@itwire.com

CONTACT US!

LAYER 1 ENCRIPTION A KEY TO CYBER-SECURITY SOLUTION

Security requirements such as confidentiality, integrity and authentication have become mandatory in most industries.

Data encryption methods previously used only by military and intelligence services have become common practice in all data transfer networks across all platforms, in all industries where information is sensitive and vital (financial and government institutions, critical infrastructure, data centres, and service providers).

Get the full details on Layer-1 encryption solutions straight from PacketLight’s optical networks experts.

This white paper titled, “When 1% of the Light Equals 100% of the Information” is a must read for anyone within the fiber optics, cybersecurity or related industry sectors.

To access click Download here.

DOWNLOAD!

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