Three prominent retailers—Michael Hill Jeweller, Hairhouse Warehouse Online, and MyHouse’s parent company, Global Retail Brands Australia—have been fined $19,800 each by the Australian Competition and Consumer Commission (ACCC) for allegedly misleading customers about their Black Friday sales.
Following an investigation into last year’s promotional advertisements, the ACCC raised concerns that these retailers misrepresented the degree and nature of discounts offered to consumers. The watchdog’s Deputy Chair, Catriona Lowe, highlighted that such misleading claims could distort consumer expectations, particularly when advertisements promise storewide discounts.
According to Lowe, businesses are required to accurately portray their sales while avoiding any fine print that could obscure the true nature of their offers. As the end of financial year (EOFY) sales approach, the ACCC warns that they will scrutinise promotional activities to ensure compliance with Australian Consumer Law, with potential enforcement actions for non-compliance.
Specifically, Michael Hill Jeweller came under fire for claiming a “25% off Sitewide” promotion, an assertion that may have misled consumers since certain items on their site were excluded from the discount. Similarly, MyHouse faced accusations of misleading advertising, with claims of “up to 60% off sitewide + extra 20% off” that did not apply to all products, leading to further consumer confusion.
Hairhouse Warehouse Online was fined for a misleading advertisement that stated, “SAVE 20% to 50% sitewide,” which implied all items would be discounted by that range. The ACCC identified that over 25% of products were not included in this sale, further misleading customers.
Lowe expressed concern that false discount claims not only mislead consumers but also create an unfair competitive environment against businesses that accurately describe their sales. While the penalties were issued, it’s important to note that the payment does not constitute an admission of wrongdoing under Australian consumer law.
Retailers have been approached for comments regarding these penalties, highlighting the ongoing scrutiny of advertising practices in the retail sector. As consumer trust is paramount, the emphasis on honest promotions has never been more pronounced as businesses navigate compliance within this landscape.