Enforceable undertakings provided by the South Australian wine
retailer, Moving Juice Pty Ltd (Retailer), to the ACCC act as a
timely reminder to all businesses of the importance of transparency
The ACCC investigated 2 types of advertising claims made by the
firstly, representations that consumers would receive a slab of
Coopers beer "free" and "absolutely free" if
they purchased 12 bottles of Dog Leg wine; and
secondly, claims of wine price reductions using "Was
$X" and "Now $Y" pricing comparisons.
The Retailer admitted that the:
price for all or most of the "free" wine had been
incorporated into the price of the Coopers beer; and
wine had only been offered for sale at the "Was"
price for 6 months prior to the commencement of the advertising
The ACCC was concerned that the advertising campaigns either
misled or deceived consumers (or were likely to do so), or
constituted false or misleading representations regarding price, in
contravention of sections 52 and/or 53(e) of the Trade Practices
Act. In response to the investigation, the Retailer agreed to
publish corrective advertising in the Adelaide press, provide the
proceeds of the advertising to a local charity, and to implement a
Trade Practices Act compliance program.
It is important that when advertising savings, businesses ensure
that the discount specified is real and not illusory. This means
that the product must have been "genuinely offered" at
the relevant higher price for a "reasonable period" prior
to the claim being made.
As the ACCC is very active in this area, if businesses are in
any doubt as to the legality of their advertising, they should seek
a second option from their lawyer before "going to
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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