Enforceable undertakings provided by the South Australian wine retailer, Moving Juice Pty Ltd (Retailer), to the ACCC act as a timely reminder to all businesses of the importance of transparency in advertising.
The ACCC investigated 2 types of advertising claims made by the Retailer:
- firstly, representations that consumers would receive a slab of Coopers beer "free" and "absolutely free" if they purchased 12 bottles of Dog Leg wine; and
- secondly, claims of wine price reductions using "Was $X" and "Now $Y" pricing comparisons.
The Retailer admitted that the:
- price for all or most of the "free" wine had been incorporated into the price of the Coopers beer; and
- wine had only been offered for sale at the "Was" price for 6 months prior to the commencement of the advertising campaign.
The ACCC was concerned that the advertising campaigns either misled or deceived consumers (or were likely to do so), or constituted false or misleading representations regarding price, in contravention of sections 52 and/or 53(e) of the Trade Practices Act. In response to the investigation, the Retailer agreed to publish corrective advertising in the Adelaide press, provide the proceeds of the advertising to a local charity, and to implement a Trade Practices Act compliance program.
It is important that when advertising savings, businesses ensure that the discount specified is real and not illusory. This means that the product must have been "genuinely offered" at the relevant higher price for a "reasonable period" prior to the claim being made.
As the ACCC is very active in this area, if businesses are in any doubt as to the legality of their advertising, they should seek a second option from their lawyer before "going to print".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.