#AceNewsReport – June.16: The ACCC alleges that digiDirect contravened the ACL by falsely representing to consumers that all products were available at a discounted price, when this was not the case.
ACCC Report: digiDirect pays penalties for misleading consumers about ‘storewide’ sales: In June, July and October 2020, digiDirect conducted sales promotions that used the headline statement “X% off storewide”. The promotions were advertised on digiDirect’s website, posted on social media and sent via email to digiDirect subscribers.
While the promotions stated the discount would apply to all products available for sale, hundreds of products, between five and seven per cent of all products, were excluded from the promotions. This included a number of popular digital cameras, camera lenses and accessories.
“A business that advertises a ‘storewide’ sale but excludes a significant number of items is, in our view, clearly misleading consumers, which is unacceptable,” ACCC Chair Rod Sims said.
“In this instance, the offer of storewide discounts will have attracted many consumers to the digiDirect sale. While those consumers may not have been misled about whether or not the discount ultimately applied to the product they wanted to purchase, it is still unacceptable for a business to entice customers to a sale on the promise of discounts that may not apply.”
The three infringement notices issued were in relation to the following promotions:
The June 2020 ‘End of Financial Year’ promotion – this was advertised on the digiDirect website and included the headline statement “15% OFF STOREWIDE”;
The July 2020 ‘Click Frenzy’ promotion – this was posted on the digiDirect Facebook page and included the headline statement “15% OFF STOREWIDE”; and
The October 2020 ‘Clearance’ promotion – this was sent by digiDirect to its subscribers and included the headline statement “20% OFF* STOREWIDE”.
Each of these promotions contained the words “terms and conditions apply” or “terms and exclusions apply” in a small font. The ACCC considers that the “storewide discount” representation was not capable of being qualified so that it was no longer misleading, even if the disclaimers had been more prominent.
digiDirect stopped advertising these ‘storewide’ discounts promptly after the ACCC intervened.
digiDirect is an Australian retailer of electronic goods, including photo and video equipment, lighting equipment and drones. It operates the website www.digidirect.com.au and an eBay and Amazon storefront. There are also six physical digiDirect branded stores across Perth, Melbourne, Sydney and Brisbane.
Note to editors
False or misleading advertising laws apply to online content. Any information that you post online about your products, services or business must be accurate and truthful, whether it’s on social media, your website or any other online platform. This information includes prices, images and descriptions of what you are offering, as well as shipping options and delivery times.
It is against the ACL for businesses to make false or misleading claims, or engage in conduct that is likely to mislead or deceive, when advertising online. Even if you did not intend to break the law, there can be significant penalties for non-compliance.
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain consumer protection provisions in the ACL. The payment of a penalty specified in an infringement notice is not an admission of a contravention of the ACL.
Examples of digiDirect ‘storewide’ promotions:
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#AceNewsDesk report ……Published: Jun.16: 2021:
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