The Australian Competition and Consumer Commission (the “ACCC”) has announced in athat they have instituted proceedings against Kogan Australia Pty Ltd (“Kogan”) in the Federal Court of Australia, alleging that Kogan made false or misleading representations about a 10 percent discount promotion, thus breaching the Australian Consumer Law (the “ACL”, contained in Schedule 2 to the Competition and Consumer Act 2010 (Cth)).
Thethat between 27 June 2018 and 30 June 2018, Kogan ran an online promotion where consumers could obtain a 10 percent discount on most of its products by using the discount code “TAXTIME”. The promotion was held ahead of the end of the 2017-2018 financial year and was published on its website, via text messages and emails to consumers.
According to a report published in the(“SMH”), the ACCC will allege that from 26 June 2018 to 2 July 2018, Kogan then raised the advertised prices on approximately 600 products. The prices were increased to such an extent that, even with the discount code, customers were paying more than they would have before the promotion.
Towards the end of the promotion period, Kogan’s email advertisements used statements such as "48 hours left!" and "Ends midnight tonight!" which the ACCC will allege gave the impression that consumers only had a limited time to purchase at the “discounted” prices.
ACCC Commissioner Sarah Court commented in the:
Inthe ACCC took action against Kogan for allegedly engaging in pricing conduct which raised similar concerns. In that instance, the ACCC issued three infringement notices totalling $32,400, as it had reasonable grounds to believe that Kogan had made false or misleading representations about the price of three computer monitors which were advertised by Kogan during a Fathers’ Day Promotion on its eBay store, thus contravening the ACL.
The ACCC said in a media release published at the time:
See our previous TimeBase article for more on the history of the matter.
In a, a spokesperson for Kogan.com said:
The ACCC has also lodged awith the Federal Court, which lists all products and the prices before, during and after the promotions. The ACCC is also seeking penalties, injunctions, declarations, corrective notices and costs from Kogan.
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