digiDirect pays $99k penalty for misleading discount claims

The ACCC has released a statement this morning about Digital Imaging Express Pty Ltd, trading as digiDirect, which sells electronic goods.

The company has paid $99,000 in penalties after the ACCC issued it with five infringement notices for making allegedly misleading discount claims.

In a court-enforceable undertaking provided to the ACCC, digiDirect admitted that its discount claims were misleading, in breach of the Australian Consumer Law.

digiDirect advertised certain electronic products on its website as being discounted from a higher price that was struck through, and used the words “price slashed”, when in fact these products were rarely advertised and almost never sold at the higher price.

digiDirect's misleading discounts

One example was a mini wireless keyboard, which it advertised for $149 with a strikethrough price of $229. Other products included a camera, a camera and lens kit, and a Bluetooth remote control camera accessory.

“digiDirect’s advertising may have misled consumers into thinking they were getting a genuine discount when in reality the products were rarely advertised and almost never sold at the higher strikethrough price, and the suggested discount was illusory,” ACCC Deputy Chair Mick Keogh said.

“Misleading discount and savings claims can influence consumers to buy from a particular retailer because they are misled into believing they are getting a good deal, rather than shopping around to find a genuine discount or the best available price.”

The ACCC first became aware of digiDirect’s misleading strikethrough pricing during a sweep of retailers’ sales claims made during the Black Friday sales.

“All businesses should be on alert that the ACCC is actively monitoring for misleading pricing claims in the retail and supermarkets sectors, and we will not hesitate to take appropriate enforcement action against businesses who make misleading claims to consumers,” Mr Keogh said.

The ACCC has accepted a court-enforceable undertaking from digiDirect in which it undertakes not to make misleading strikethrough discount claims and to implement a consumer law compliance program.