Federal Court Finds Kogan Ran Misleading Sales Promo
The Federal Court has found that Kogan.com breached the Australian Consumer Law by making false and misleading representations about a tax time sales promotion, in proceedings brought by the ACCC.
Kogan.com ran the online promotion during 27th-30th June 2018, when they advertised that consumers could use the code ‘TAXTIME’ to reduce prices by 10% at the checkout.
The Court found that these advertisements were misleading as Kogan.com had increased the prices of more than 600 of its products immediately before the promotion. In most cases the prices of these products had been increased by at least 10%.
Kogan.com also reduced the prices of these products shortly after the promotion ended, back to their pre-promotion prices.
This promotion was advertised on the Kogan.com site, and in more than 10 million emails and 930,000 SMS messages.
“Many consumers who took up the offer on one or more of the 600 or so products in many cases actually paid the same as, or more than, what they would have paid immediately before and after the promotion,” said ACCC Chair Rod Sims.
“All businesses must ensure that their advertisements do not mislead consumers about the nature of a promotion, and that any promised savings are genuine.”
A hearing on relief and penalties will be held at a later date. The ACCC is seeking declarations, injunctions, pecuniary penalties, corrective notices and costs.