Misleading carpet advertising prevented
The high profile rug retailer Rugs a Million must give undertakings to the Consumer Protection Commissioner not to engage in misleading television advertising and in-store representations relating to the prices of its products.
Today’s Court decision follows a Consumer Protection investigation and subsequent legal action taken by the Consumer Protection Commissioner.
Three Rugs a Million companies are prevented from using tickets on their rugs showing original price and sale price unless the rug was on offer at the higher price for a reasonable period of time. In this case, a reasonable period was deemed to be six weeks.
The undertakings follow a finding by Supreme Court Judge Ralph Simmonds that a consumer would ‘take it from the tickets that the products had been on sale at the higher price for a substantial period of time’.
Justice Simmonds held that ‘there is, on the face of it, a serious question to be tried as to the false, misleading or deceptive character of dual price tickets in the circumstances. I consider the case to be a relatively strong one …’
The companies are also prevented from making certain representations to consumers, including that:
� Particular discounts have never been offered before, when they have been; and
� Particular sales are on for a very limited time when, in fact, the sales are repeated soon afterwards.
Consumer Protection Commissioner Patrick Walker welcomed the Court’s decision in this important case for truth in advertising as a big win for consumers.
“One of the most important messages to retailers from this decision today, is that traders cannot use an ‘original’ or ‘was’ price, when products were never at that price or not for a reasonable period of time,” Mr. Walker said.
“Regardless of the size of the trader, they must comply with consumer protection and fair trading laws and not make misleading statements to entice consumers to spend money with them,” Mr. Walker said.
Consumer Protection will continue to progress its legal action against Rugs a Million and three of its officers to trial at which permanent injunctions, declarations and corrective advertising orders will be sought.
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Originally Posted by RevPsych 
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