Michael Hill, Hairhouse fined for ‘misleading’ ads
The consumer watchdog has slammed three major Australian retailers a total of almost $60,000 in fines for misleading customers about Black Friday bargains.
Michael Hill Jeweller (Australia) Pty Ltd (Michael Hill), Global Retail Brands Australia Pty Ltd (GRBA) and Hairhouse Warehouse Online Pty Ltd (Hairhouse Online) have each paid a penalty of $19,800 after being caught out in a sweep of advertisements for last year’s Black Friday and post-Christmas sales.
The ACCC said the sweep identified concerns that some ads had misrepresented the size and scope of discounts offered in the major sales.
“We allege these claims misled consumers that all goods in the physical or online store were discounted, or that the discounts were greater than was actually the case,” Australian Competition and Consumer Commission deputy chair Catriona Lowe said on Wednesday.
“Advertisements that talk about ‘sitewide’ or ‘storewide’ sales or promise discounts ‘off everything’ should deliver what customers expect, and not be used by retailers to hook consumers under false pretences.”
Michael Hill was fined for this ad. Image: ACCC
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Jewellery business Michael Hill paid a penalty of $19,800 for an allegedly misleading representation of its Black Friday sale.
Its online advertisement promoted the sale with the words “Member Event 25% off Sitewide”.
“Michael Hill’s statement may have misled consumers, and contravened the Australian Consumer Law, because some of the products in its online store were not part of the sale and were not discounted,” Lowe said.
Homewares and kitchen goods retailer GRBA paid an identical penalty after being issued with an infringement notice for its MyHouse store’s online Black Friday ad, which the ACCC alleges was misleading.
The ad displayed on the MyHouse website during the sale included:
- a ribbon banner stating “Black Friday Up to 60% Off Sitewide + EXTRA 20% off”; and
- a large headline graphic stating “Up to 60% OFF RRP EVERYTHING ON SALE” followed by the text “+EXTRA 20% OFF”.
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“We say this was misleading because the extra 20 per cent discount was not available on all of its products,” Lowe said.
“Retailers need to ensure that their advertising makes it clear to consumers which products are discounted, and by how much.”
As well as MyHouse, GRBA operates other similar businesses such as House, Robins Kitchen, House Bed & Bath and Baccarat.
The watchdog said this MyHouse ad was misleading. Image: ACCC
Hairhouse Online, the operator of the Hairhouse hair and beauty website, also paid a $19,800 penalty over a Black Friday ad.
The ACCC considered its statement “SAVE 20% to 50% SITEWIDE” misled consumers into believing everything on its website was reduced by 20-50 per cent. More than a quarter of the products were excluded.
“Businesses that make false discount claims not only risk misleading consumers, they also compete unfairly against other businesses that correctly state the nature of their sales,” Lowe said.
More than a quarter of products were excluded from this “sitewide sale”, the ACCC alleges. Image: ACCC
She said businesses were legally obliged to accurately describe their sale offers and should not use small-print disclaimers to disguise limitations.
“During the end-of-financial-year sales, retailers should be aware that we will continue to keep an eye on sales promotions to ensure consumers are not being misled, and retailers may face enforcement action if they make sales representations that contravene the Australian Consumer Law,” Lowe said.
