Michael Hill Jeweller has been issued an infringement notice and fined AUD $19,800 by the Australian Competition and Consumer Commission (ACCC) following a review of its 2023 Black Friday sales promotion.
The consumer watchdog determined that the company’s advertising misrepresented the extent of its advertised discounts.
Promotion Found to Contravene Consumer Law
The ACCC’s investigation related to an online advertisement for a member event, which stated ‘25% off sitewide’. However, the ACCC found that not all items listed on Michael Hill’s online store were included in the promotion.
“Michael Hill’s statement may have misled consumers, and contravened the Australian Consumer Law, because some of the products in its online store were not part of the sale and were not discounted,” said ACCC Deputy Chair Catriona Lowe.
Legal Requirements for Promotional Accuracy
The ACCC reiterated that any sale advertised as applying sitewide must reflect actual availability of discounts across all products. Use of terms like “sitewide” or “storewide” must not be qualified in ways that undermine the main message of the promotion.
“Advertisements that talk about ‘sitewide’ or ‘storewide’ sales or promise discounts ‘off everything’ should deliver what customers expect, and not be used by retailers to hook consumers under false pretences,” Lowe stated.
She added that businesses are “legally obliged to accurately describe their sale offers and should not use small point disclaimers to terms and conditions to disguise the real extent of their offers.”
Industry Implications
This enforcement action highlights the importance for jewellery retailers to ensure that promotional messaging is accurate and consistent with actual sale terms. The ACCC continues to monitor sales activity, particularly during key trading periods, and may take enforcement action where it identifies misleading representations.
“During the EOFY sales, retailers should be aware that we will continue to keep an eye on sales promotions to ensure consumers are not being misled, and retailers may face enforcement action if they make sales representations that contravene the Australian Consumer Law,” Lowe said.
Jewellery businesses are reminded to review their promotional content for compliance with consumer law and avoid claims that could mislead customers regarding the scope of their sales.
