Knock Knock. Who’s there? The ACCC!
Recently, the ACCC has taken action against a number of door-to-door sales businesses. First it was AGL, then Neighbourhood Energy and EnergyAustralia and now Craftmatic.
Craftmatic makes adjustable beds primarily sold to elderly customers through in-home sales presentations. The door-to-door salesmen misrepresented the value of Craftmatic’s ‘lifetime warranty’ and the price of beds on a payment plans.
This isn’t the first time the ACCC has come after Craftmatic and their beds; in 2009 the company admitted that they made misleading statements and used sales methods to unduly influence elderly customers.
This time around Craftmatic has paid infringement notice penalties totalling $19,800.00.
Everyone knows that if you advertise your goods as made in, say, Italy, then they need to actually come from Italy, right? Well not everyone.
Victorian butcher Kingsland Meatworks & Cellars used the words "King Island" in the store’s logo, domain name, business names, and referred to King Island on its website and signs displayed outside its shop, and published newspaper ads about King Island to promote its beef.
But the beef in the shop wasn’t actually from King Island, so the butcher got slapped on the rump with a $50,000 fine for making misleading statements about its origin.
Get it while it’s hot
Between 2008 and 2010 Zamel’s advertised jewellery on its website and catalogues using WAS/NOW pricing. But Zamel’s had never sold the some of the jewellery at the "WAS" price or only a very limited quantity at that price before the offering it the "NOW" price. Misleading much?
This is classic behaviour which just begs for ACCC intervention. In fact, in 2008 Zamel’s (under different ownership) was found guilty of engaging in the same misleading conduct. Unfortunately, this did not serve as cautionary tale. Zamel’s paying for it now with a $50,000 penalty.