The Australian Competition and Consumer Commission has instituted proceedings against Harbin Pty Ltd, trading as Ray’s Outdoors, alleging that it engaged in misleading conduct in promoting the chain’s Elizabeth store opening sale.
Ray’s Outdoors placed a newspaper advertisement in The Advertiser in South Australia in March 2007 that featured a Rio Grand barbeque for $99 with a strike-through price of $299.99 as part of the opening sale for the new Elizabeth outlet.
The ACCC is alleging that this advertising misrepresented what customers would have paid for the barbeque immediately before the sale and what customers buying the barbeque during the sale would have saved.
Get business news first
Sign up to SmartCompany’s daily newsletter
The ACCC is seeking declarations that Harbin contravened sections 52 and 53(e) of the Trade Practices Act 1974, wants corrective advertising and a review and revision of Harbin’s internal business operations as well as costs.
The matter has been listed for a directions hearing in the Federal Court, Adelaide, at 9:30am on 14 January 2008 before Justice Finn.