Knowledge

Two-price advertising

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One point the case illustrated was that a disclaimer in a catalogue may not be a defence. Allans had fine print saying the savings were off recommended retail prices (RRPs) but that was only suppliers' recommendations. Allans chose not to rely on it as a defence or as mitigation on legal advice.
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was prosecuted by the ACCC over a catalogue that it issued in 2000, showing musical instruments at prices heavily discounted from stated normal prices. They pleaded guilty to 9 of the 18 counts and were fined $ 80,000. The court was satisfied the "was" prices shown were not prices that had been
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Regulatory treatment of the practice varies around the world. A clear deception, it is likely to come under false advertising or fair trading laws. The practice normally takes place only in retail marketing. Certain industries tend to be more prone to it than others.
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Justice Tamberlin described that fine print as "obscure and totally inadequate". In fact, the disclaimer worked against the company, as it indicated to the judge that Allans knew that their claims needed an explanation, and so were not an accident.
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practice of showing customers two prices, a supposed normal price and a lower price, which is claimed to be a special offer or discount, but in fact, the stated normal price is a fiction.
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saving, usually very substantial, as a way to attract customers. The term two-price advertising refers only to those cases where the "normal" price claimed is designed to deceive.
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prices shown in catalogues. Jewelry and carpet rugs seem to be industries frequently associated with two-price advertising.
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Was: apparently a great marketing ploy. Now: unwanted attention from the ACCC
135: 46: 23: 120: 66: 65:, in 2006, the ACCC and state authorities issued joint warnings about 162: 61:
which also investigate such matters. For example, ahead of
29:The idea of two-price advertising is to present an 101:Australian Competition & Consumer Commission 55:Australian Competition & Consumer Commission 97:Nation-wide monitoring of jewellery advertising 8: 49:, two-price advertising comes under the 89: 72:In 2002, the now-defunct retail chain 7: 14: 113:ACCC v Allans Music Group Pty Ltd 51:Competition and Consumer Act 2010 168:Two-price comparison advertising 1: 16:Form of deceptive advertising 77:offered prior to the sale. 53:as misleading conduct. The 199: 117:Federal Court of Australia 142:June 18, 2005, at the 20:Two-price advertising 59:consumer protection 24:sales and marketing 158:Displaying prices 138:, 19 March 2003 190: 146: 129: 123: 110: 104: 94: 198: 197: 193: 192: 191: 189: 188: 187: 173: 172: 154: 152:Further reading 149: 144:Wayback Machine 130: 126: 111: 107: 95: 91: 87: 43: 17: 12: 11: 5: 196: 194: 186: 185: 175: 174: 171: 170: 165: 160: 153: 150: 148: 147: 124: 105: 88: 86: 83: 42: 39: 15: 13: 10: 9: 6: 4: 3: 2: 195: 184: 181: 180: 178: 169: 166: 164: 161: 159: 156: 155: 151: 145: 141: 137: 133: 128: 125: 122: 118: 114: 109: 106: 102: 98: 93: 90: 84: 82: 78: 75: 70: 68: 64: 60: 56: 52: 48: 40: 38: 34: 32: 27: 25: 21: 127: 108: 92: 79: 74:Allans Music 71: 63:Mother's Day 44: 35: 30: 28: 19: 18: 183:Advertising 119:report, at 103:10 May 2006 163:Google Ads 85:References 136:Freehills 47:Australia 41:Australia 177:Category 140:Archived 31:apparent 121:AustLII 67:jewelry 22:is the 45:In 179:: 134:, 115:, 99:,

Index

sales and marketing
Australia
Competition and Consumer Act 2010
Australian Competition & Consumer Commission
consumer protection
Mother's Day
jewelry
Allans Music
Nation-wide monitoring of jewellery advertising
Australian Competition & Consumer Commission
ACCC v Allans Music Group Pty Ltd
Federal Court of Australia
AustLII
Was: apparently a great marketing ploy. Now: unwanted attention from the ACCC
Freehills
Archived
Wayback Machine
Displaying prices
Google Ads
Two-price comparison advertising
Category
Advertising

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