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False or Misleading Advertising In Retailers Catalogues

“Home entertainment products retail group JB Hi-Fi has recently responded to concern raised by the Australian Competition and Consumer Commission (ACCC) by agreeing to curb it’s advertising practices. The firm has agreed not to advertise with a discount off it’s recommended retail price unless the product was previously been advertised and sold at that recommended retail price in the same markets. It also agreed to establish and implement a new trade practices Act compliance program. The ACCC had expressed concern about advertising in their March 2006 Printed catalogue saying The catalogue included 45 home entertainment products advertised at a discount represented as a saving of a nominated sum off each product’s recommended retail price, . The ACCC was concerned that the advertised discounted prices may have actually been the normal prices of the items, and as such may have been false or misleading advertising in breach of the the Trade Practices Act. The lesson for all retailers is that you can not claim a product’s price is a discounted price unless it really is, otherwise you are in breach of the consumer protection provisions of the trade practices Act. The ACCC is watching, and you may need to be able to demonstrate that the product was previousely offered and sold at the higher price.”

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