The ACCC had reasonable grounds to believe the advertisement failed to prominently state the total minimum price payable for that offer in contravention of section 48 of the Australian Consumer Law.
The advertisement, which was published in the Herald Sun newspaper and emailed to more than 90,000 people in May 2013, offered consumers a three game membership and Collingwood guernsey for “only $20*”. In fact, the total price was $120 payable over six months. While the advertisement referred to a payment plan in fine print, it did not display
the total price.
Under the Australian Consumer Law, advertisements that state part of the price of goods or services must also prominently state the total price payable by consumers.
Advertisements that do not state the real price of goods or services have the potential to draw in consumers based on half-truths. All businesses must ensure that they comply with their obligations under the Australian Consumer Law”, ACCC Chairman Rod Sims said.
The payment of an infringement notice is not an admission of a contravention of the Australian Consumer Law. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
The ACCC has previously issued infringement notices against companies for failing to prominently state the total minimum price payable or misleading consumers about the price of goods and services.