SA: Allans fined $80,000 for misleading advertising
ADELAIDE, Dec 13 AAP - Australia's largest musical instrument retailer, Allans, wastoday fined $80,000 for misleading advertising in the Federal Court.
Allans Music Group Pty Ltd had pleaded guilty in the court, sitting in Adelaide, tonine counts of making false or misleading claims in a 2000 Christmas catalogue.
The catalogue claimed to sell items at reduced prices, highlighting prices as `was' and `now'.
Justice Brian Tamberlin today convicted Allans and imposed cumulative fines of $80,000.
He found Allans' advertising in the catalogue was "false in the sense that for allpractical purposes, the items in question had not been sold in the pre-Christmas periodat the `was' price but rather prices substantially below the claimed `was' price".
Justice Tamberlin said the catalogue "was plainly designed to attract custom on a falsebasis during a key marketing period".
"The attraction of custom, of course, cannot be criticised, but the resort to misleadingconduct is reprehensible," Justice Tamberlin said.
"The extent to which Allans departed from the true position as to earlier pricing issignificantly in excess of $50 and in some cases amounts to a difference in respect of$1,000."
Australian Competition and Consumer Commission chairman Allan Fels said the case wasthe first time a retailer had been convicted by the Federal Court for the use of false`was-now' advertising.
"The court has made it clear that when a business tells consumers they will receiveprice savings, those consumers will expect that the price offered is less than the pricethey would have paid at that same business before the promotion began," Professor Felssaid in a statement.
AAP sl/apm/de
KEYWORD: ALLANS
No comments:
Post a Comment