The Federal Court has fined Kogan (a large Australian e-tailer) AUD$350,000 for making false or misleading representations about a 'tax time' sales promotion, in breach of Australian Consumer Law (ACL). Kogan promoted a discount code ‘TAXTIME’ which reduced prices by 10% at checkout. However, Kogan had increased the prices of 621 products immediately prior to the promotion. This decision clearly demonstrates the regulator's willingness to take action against businesses who contravene their obligations to consumers under the ACL.
This decision sends a strong signal to businesses like Kogan, which regularly conduct online sales promotions, that they must not entice consumers to purchase products with a promise of discounts that are not genuine