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4WD Supacentre pays $63,000 for alleged misleading 'was/now' pricing

The Outdoor Supacentre Pty Ltd, trading as 4WD Supacentre, paid $63,000 in penalties after the Australian Consumer and Competition Commission (ACCC) issued it with five infringement notices.The 4WD Supacentre is a retailer of four-wheel drive vehicles and camping accessories. It sells products online, in company stores, and to dealers.

Background

Between December 2018 and January 2019, 4WD Supacentre advertised some of its highest selling products with a high 'was' price and a low 'now' price. This was despite the products not being advertised or sold by 4WD Supacentre at the 'was' price at any time during the previous three months.This was misleading to customers as it created an expectation they would be paying a cheaper price for these products.

For example, 4WD Supacentre advertised a camp oven with a 'was' price of $279 and a 'now' price of $84, representing an apparent saving of $195. In fact, the camp oven had not been advertised at $279 for more than three months.

According to Mr Mick Keogh from the ACCC, "Businesses must tell the truth when advertising "discounted" prices, and must not be deceptive when claiming increased savings."

Mr Keogh also said that "We were very concerned that this was misleading consumers into thinking they could achieve significant savings with 4WD Supacentre, when this was not necessarily the case".

According to Australian law all businesses should ensure they provide consumers with accurate price information, enabling informed choices by consumers based on potential savings and an even playing field for competing businesses which are doing the right thing," Mr Keogh said.If they do not provide accurate information they are misleading customers and therefore breaking the law.It is the responsibility of the ACCC to make sure companies in Australia obey the law on these important issues.

The ACCC accepted a court-enforceable undertaking in which 4WD Supacentre committed to not engage in similar conduct.Under the terms of the decision 4WD Supacentre will also publish corrective advertising and receive training in the Australian Consumer Law.

More information about the case of the 4WD Supacentre can be found on the ACCC's website:Outdoor Supacentre Pty Ltd.