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NEWS / BUSINESS NEWS
ACCC Bags Godfreys For Sucking In Customers

By Branko Miletic | Wednesday | 11/06/2008

The Australian Competition and Consumer Commission (ACCC) has found Godfreys Franchise Systems guilty over irregularities in the advertised price of its Nilfisk A100 vacuum cleaners.

Godfreys is a franchisor and retailer of vacuum cleaners throughout Australia and in 2007, promoted a Nilfisk A100 vacuum cleaner which was new to the Australian market and a model exclusively sold by Godfreys.

In a catalogue distributed in some locations of Perth, Western Australia, Godfreys made the representations "$124.50, NILFISK, HALF PRICE!" and caused signs to be displayed in some Godfreys stores that read "Clean Up Sale! Nilfisk $249 ½ Price $124.50".

Godfreys has acknowledged that the half-price representations for the product in circumstances where it had not previously been offered for sale may be misleading and deceptive in contravention of section 52 the Trade Practices Act 1974.

The ACCC has accepted court enforceable undertakings from Godfreys that it will:

    * refrain from using comparative price advertising of vacuum cleaners by referring to specific previous (or 'was') prices for goods where those goods have not been readily available from Godfreys prior to the promotion
    * arrange for an information notice to be displayed in the franchise stores covered by the catalogue
    * publish a corrective notice in a Godfreys superstore catalogue in Western Australia, and
    * establish and implement a trade practices law compliance program.


 

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