The West Australian franchisees were forced to cough up $6,600 to the ACCC for advertising the Kodak ‘Playsport’ pocket video camera when they did not actually stock the product.
Harvey’s ‘iPad is here’ catalogue distributed in Perth last November advertised a Kodak camera for $218 when these franchisees did not actually stock the device.
The Australian Competition and Consumer Commission issued infringement notices believing franchisees had “engaged in bait advertising in contravention of section 56(2) of the Trade Practices Act 1974 by advertising the camera in a catalogue when they were unable to supply the product to consumers,” it said today.
ACCC chairman Graeme Samuel warned businesses to be careful when advertising their products via catalogues.
“Promotional material must be accurate and there must be adequate stock of the advertised product to meet reasonable demand, otherwise businesses risk bait advertising which is illegal.”
The offending stores, all computer franchisees included stores in Belmont, City West and Osborne Park and Port Kennedy.
|Once an infringement notice penalty is paid, the ACCC cannot begin court proceedings over the alleged contravention. The payment of an infringement notice penalty is not an admission of a contravention of the Act.|