James Lane and Vuly penalised over misleading Black Friday promotions
Furniture retailer James Lane and children’s play equipment retailer Vuly have paid nearly $60,000 in penalties for making misleading representations about their Black Friday sales.
The Australian Competition and Consumer Commission (ACCC) alleges the two businesses claimed products would be discounted only for a limited time when, in fact, the discounts continued after the advertised end date.
The investigation, part of the ACCC’s sweep of Black Friday sales advertising last year, found that James Lane advertised that its sale would end on December 3, but products continued to be sold at the discounted price for another week.
Similarly, Vuly advertised that products would be discounted alongside a countdown timer to the sale’s end date. Immediately after the sale ended, the discount continued, and the countdown timer reset to a new end date.
ACCC deputy chair Catriona Lowe alleges that such practices created a false sense of urgency and pressured consumers to make rushed purchasing decisions for fear of missing out on a discount.
“These claims also hurt competition as they can discourage consumers from shopping around,” she said.
The regulator issued James Lane with one infringement notice and Vuly with two for their conduct. As a result, James Lane has paid a penalty of $19,800, while Vuly paid $39,600.
The companies have committed to the ACCC that they will ensure their future sales advertising complies with the Australian Consumer Law.
“With this year’s Black Friday sales just around the corner, all retailers should be reviewing their sales advertising practices to ensure that any sales or discount claims they make are accurate, clear and not likely to mislead or deceive consumers.
“Businesses must ensure any sale end dates, countdown timers or limited-time discount claims are genuine,” Lowe said.
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