Ugg footwear retailer fined over misleading strikethrough pricing
Ugg footwear retailer Christofi Investments has been fined $39,600 for making misleading pricing claims about the products sold on its websites.
According to the ACCC, the company advertised classic ugg slippers and platform uggs at an apparently discounted price alongside a higher strikethrough “was” price.
The regulator alleged that these claims were misleading, as the products had not been offered for sale or sold at the higher price claimed in the advertisements in a reasonable period beforehand.
“Consumers were likely to have been misled by the Ugg websites’ claims that they were getting ugg boots and slippers at a genuine discount,” said ACCC commissioner Luke Woodward.
“It is a breach of Australian Consumer Law to mislead consumers about products or pricing… False pricing claims do not just cause harm to consumers, they harm competing retailers who present their prices fairly and accurately,” Woodward added.
Christofi is an Australian-based retailer of Ugg footwear and related products, with 26 physical stores nationwide. The company also owns the Original Ugg Australia Classic website and administers the Ugg Originals website.
In Australia, ugg refers to footwear typically made from twin-faced sheepskin, with a soft fleece interior and a tanned outer surface.
This matter is not related to legal disputes about the Ugg trademarks between US-based and Australian companies in recent decades.
In a similar case, the ACCC previously alleged that electronics retailer JB Hi-Fi misled customers by listing 17 products as discounted, even though they had never been offered at a higher price. A total of 206 consumers bought the products when they were advertised with an allegedly misleading ‘was’ price.
Last week, the company began issuing refunds totalling more than $250,000 in light of the probe by the consumer watchdog.
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