The Meeting Place

ACCC takes action over misleading discounts

The ACCC has instituted proceedings against Kogan in the Federal Court alleging that the company made false or misleading representations about a 10 per cent discount promotion, in breach of the Australian Consumer Law.

Between 27 and 30 June 2018, Kogan ran an online promotion where consumers could obtain a 10 per cent discount on most of its products by using the discount code “TAXTIME”.  The promotion was held ahead of the end of the 2017/18 financial year.

Kogan published this promotion on its website and via text messages and emails to consumers.

The ACCC alleges that Kogan’s advertisements were false or misleading because Kogan increased the prices of more than 600 of its products immediately before the promotion. In most cases prices increased by at least 10 per cent.

“We allege that Kogan’s advertisements were likely to have caused consumers to think they were getting products below their usual prices. In fact, Kogan had inflated product prices which we say created a false impression of the effective discount,” ACCC Commissioner Sarah Court said.

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 alleges gave the impression that consumers only had a limited time to purchase at the “discounted” prices.

However, Kogan reduced the prices of the affected products shortly after the promotion ended, many back to their pre-promotion prices.

“Businesses must not make claims to consumers about discounts or sales unless they are offering genuine savings,” Ms Court said.

The ACCC is seeking penalties, injunctions, declarations, corrective notices and costs from Kogan.

12 comments

I am sure most places do this and when I see whatever % OFF I ask myself  OFF WHAT

Spot on PlanB 

Agreed. Still good to see ACCC picking it up and providing a warning. Beyond that "Buyer Beware" is worth keeping in mind. Retailers are in the business of selling and pushing the price around to them is a useful mechanism to do that. The line between deception and fair trading would often be pretty sketchy.

It is not just the retailers  .... just have a look at the electricity ... all want to give % discount >>> and as PLanB says % OFF WHAT ... HOW CAN YOU COMPARE THE PRICES ????

But it is good to see ACCC stepping up .. after all it is their job.

About time they hit Kogan!

Whilst I applaud the ACCC for chasing up Kogan, I don't see any action on the fuel prices. Big Oil continues to treat the Australian public like cash cows. Why is nothing done when fuel prices rise dramatically on school holidays, long weekends, Easter and Christmas? Why are capital city prices about 20¢/litre cheaper than the rest of the state(s)? Why doesn't the ACCC talk to a business near where we live that has had a "Closing Down" sign out front for over 6 years? Is the ACCC just going for low hanging fruit in a bid to try and convince people that it is doing something?

Local IGA do the same prices rise on holidays (it is a coastal town so gets a lot of extra visitors), I avoid shopping there in holidays and weekends.

Kogan has also started luring customers in the name of third party suppliers on scores of other unrelated items to its own business and has also transferred all warranties and responsiilities to those third parties.What a nice way to escape responsibilities for duping the customers by using your platform to sell other suppliers products but not accountable.May be Kogan is trying to cash on Amazone model though I do not know whether or not Amazon completely made itself absolved from all and every liability for items purchased through Amazon from third parties though on third parties listed products Amazon does mention on item listing "fulfilled by Amazon"?It is racket which most companies,including super markets where one will find that practically most items put on sale are at the increased prices which are then discounted at 40-50%.After all it is a "convict land" though these new tactics may not be from those people?

 

Yes Kogan bought the Dick Smith name and trades under that on line.

So many dodgy ads about (as described by others here) and as for dodgy pricing, as Old Man says, what about fuel? 

Some things never change!!

Snake oil rules it seems.

At least the law demands truth in advertising except for politicians at election time who spout the biggest porkies.

At least the law demands truth in advertising except for politicians at election time who spout the biggest porkies.

About time Kogan was brought to heel. I have purchased regularly from Kogan over the years - until my latest purchase. Was a total disaster! Sold me a TV that did NOT have the specifications as stated on the ad, and was the most useless piece of rubbish! After a month I requested a credit - BUT they said it was a 'change of mind' and therefore I would have to return the TV at moy cost, pay a high amount for 'restocking', and then only get a credit, not a refund. Fobbed me off totally, just seeing me as an old dithering female who could be walked over.

Finally - less than 4 months after purchase - TV would not work at all. Paid allot of money to get a professional TV technician check it out - his honest appraisal was to 'throw it in the tip'. Amazing how promise to go to media and Consumer Affairs finally elicited a result. 

I would never buy anything from them again. 

Very interesting. Thanks In2sunset.

 

Thanks for that Sunset --- I have never bought off Kogan -- as I am a long way from them and I like to see what I am buying -- but I will sure tell all I know -- why don't you join the Product Review -- it is a great place and you can give opinions on ANYTHING you buy or have and also get opinions B4 you buy -- I use it a lot.  

At least you can let all know about the good OR the bad --

Just google   Product Review --

Yes PlanB Product review can be helpful, I have left quite a few reviews,all positive, but there are many whingers on their too leaving far too many negative and not verified. I try to only take notice of those who that are verified. I recently used it too look at car insurance and most were negative so it was not that helpful. There is also google review and trust pilot.

I am also totally uninterested in sales that say 'up to X% off'. Those important words - UP TO. Total rort. Wanted to buy a new mattress - saw the sign 'up to 50% off'. Mattresses were 10% off. Pillow slips were 50% off. Not interested. I am not interested in buying items just because they are on sale, but when I want to buy a specific item, I do shop around for the best buy.

And - the Seniors Card is a waste of plastic. Does not help at all - don't even carry it with me any more. Wanted a new tyre, rang up a participating Seniors Card company - quoted a price. Next day, went into store, spoke to same person, asked for price on same tyre, made no mention of seniors discount - and tyre was $16 cheaper. 

Perhaps that cagey buyer approach (which I always thought a bit unbecoming in this non-bartering society) where they ask for the price then produce the Seniors card would help? They can't go backwards but may go forward.

I have a seniors card but have not managed to work out what it is used for yet. They sent a booklet a year or two ago but I got lost :-) 

Do feel your pain though. Tyres are so expensive and vary so much. 4 or 5 years ago a new set cost me $1300 or $1400 (I like Michelin radials) This time, going somewhere else, they didn't have them and sold me something else they say is equal or better and the best they have. 600 and something dollars, maybe $690, half the price of the earlier but the quietest tyres I have ever used and clingy in all weathers. Having been aclimatised to higher prices I didnt think of the Seniors Card.

(I am yet to really test them out but the older I get the less likely that will be.)

If I need to buy something I research for awhile, get to know the prices, sales can be an illusion. I also totally avoid Click Frenzy sales.

Way to go. 

 

Never had a problem with Kogan because before I push the button, I always do a final check to see if they're keeping to their word, then purchase.

12 comments