Australian retail giant fined $250,000 for discounted pricing claims
22 Jan 2013
Australia's Federal Court has ordered Zamel, a major jewellery chain to pay a $250,000 fine for duping customers with inflated discounts in sales advertisements.
The penalty has been ordered against Jewellery Group Pty Ltd, trading as Zamel's.
The punishment comes following a decision last year that the company was in breach of the Trade Practices Act with its promotions promising huge savings that involved "dual pricing" in catalogue and flyer sales promotions.
The company advertised massive discounts on dozens of items including pendants, chains, bracelets and earrings: "was $275, now $149" and "was $139, now $69" or featured a "strike through" price with a line drawn through it.
The court however found that though the retailer claimed discounting the price, it did not sell, or rarely sold, the goods at the higher pre-sale price as claimed.
The Jewellery Group yesterday said it would go in appeal against the decision, and warned that the "very disappointing" judgment had "significant implications for all of retail in Australia". It added, its actions were consistent with "widespread industry practice".
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