EOFY sales warning as retailers fined for ‘sitewide’ claims

Online sales. | Newsreel
Retailers have been fined for misleading sales messaging. | Photo: Rido Franz (iStock)

The misleading use of “sitewide” messaging on Black Friday sales has led to a number of Australians retailers being fined.

The Australian Competition and Consumer Commission (ACCC) has fined three retailers after a sweep of dozens of sales advertisements for last year’s Black Friday and post-Christmas sales events.

ACCC Deputy Chair Catriona Lowe said the review raised concerns that some ads misrepresented the size and scope of discounts being offered to consumers.

Ms Lowe said Michael Hill Jeweller, MyHouse, and Hairhouse Warehouse were each fined $19,800 for alleged misrepresenting the nature of their sales, including by falsely describing discounts as applying “sitewide”.

“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,” she said.

“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.”

Ms Lowe said businesses were legally obliged to accurately describe their sale offers and should not use small point disclaimers to terms and conditions to disguise the real extent of their offers.

“During the EOFY 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.”