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Report reveals Kogan’s ‘clone’ website offers same products at higher price

Online retailer Kogan has been operating a second website to sell products similar to its main one, but at higher prices, ABC News has reported. 

The website, named Exclusive Brands, has for years sold Kogan’s own brand and highly sought-after products. 

The revelation sparked concerns that Kogan has unreasonably compared prices on the main Kogan.com website to the secondary one. The ABC alleges Kogan used the pricing differences to offer shoppers large discounts from what it calls the “standard retail price” (SRP). 

For example, a Brosa Palermo Sofa Bed sells for $3999.99 on Exclusive Brands but $1229 on Kogan.com, with the latter claiming a discount of more than $2770 from the SRP. 

Similarly, a 100-inch 4K Kogan television is offered at  $6999.99 on Exclusive Brands, compared to $3199 on the Kogan site.

The ABC compared over 1000 products sold on Exclusive Brands and on Kogan.com and found that the median price difference for a product between the sites was $100.

In response, Kogan has defended its use of the Exclusive Brands website and denied any wrongdoing. 

“Kogan.com only advertises an SRP as a reference price where that price has been offered on Kogan.com itself for a reasonable time and within a recent period of time. SRP may also apply to the same product on other Kogan Group channels,” the company said.

The retailer said Exclusive Brands was established to focus only on the exclusive products that it manufactures without any third-party products or marketplace items. 

“We take our obligations to present pricing clearly and accurately very seriously,” it said, adding that price differences between a brand’s website and discount channels are common.

Former Australian Competition and Consumer Commission (ACCC) boss Rod Sims told the ABC that the competition watchdog should investigate whether Kogan had used the Exclusive Brands site to make misleading price comparisons.

In its latest financial report, Kogan reported an 18.2 per cent uplift in sales and a 19.5 per cent increase in gross profit for the 10 months ended April 30.

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