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Snooze admits to misleading advertising


Snooze admits to misleading advertising


Retailer Snooze has admitted it ran a misleading advertising campaign in October 2008.

The retailer admitted the campaign was likely to mislead or deceive customers about the savings they would obtain. The campaign used ‘two-price’ advertising in the form of ‘Was/Now’.

The Australian Competition and Consumer Commission (ACCC) found, through a proactive audit, that Snooze had sold its products at a lower price than the reported ‘Was’. Snooze admitted the ‘Was’ prices were referenced to their internal recommended retail prices, rather than the price the products were offered and sold at. This amounts to a breach in the Trade Practices Act 1974.

Two-price advertising can make a sale price seem more attractive to consumers, but where the was price is false or inflated, customers can be misled. Such advertising places businesses at serious risk of breaking the law. An advertised higher price must be genuine and have applied prior to the sale for a reasonable period of time, said Graeme Samuel, ACCC chairman.

Snooze will write an apology letter to any customers known to have purchased a product during the period and offer a $50 gift voucher.

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