Gadgets

ACCC Fines Kogan $32,400 For Dodgy Discounting

Online electronc retailer Kogan has been fined $32,400 by the ACCC. As part of a 2015 Father’s Day promotion, the retailer offered 20 per cent off a range of computer monitors. The problem was, the prices had been bumped up prior to the sale — leaving customers with a discount of only 9 per cent.

The sale was promoted on Kogan’s eBay store, and was found by the ACCC to be in contravention of the Australian Consumer Law.

The 20 per cent discount was offered between 24th and 29th August 2015 on the following computer monitors:

  • Kogan 27” Cinema Display WQHD
  • Kogan 28” 4k LED Monitor
  • Asus 27” LED Monitor PB278Q

Before or at the start of the promotion, Kogan increased prices of the monitors, only to return them to their regular (and lower) prices after the sale was over.

“It is simply unacceptable for businesses to raise prices before applying a discount in order to give consumers the misleading impression that they are obtaining a larger percentage discount than is actually the case,” ACCC Acting Chair Dr Michael Schaper said.

“Truth in advertising and consumer issues in the online market place are both current enforcement priorities.”

[ACCC]


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