ACCC v The Jewellery Group Pty Ltd (No 2): Misleading and Deceptive Conduct

In ACCC v The Jewellery Group Pty Ltd (No 2) [2013] FCA 14 (18 January 2013) Justice Lander in the Federal Court of Australia has fined The Jewellery Group (trading as Zamel's) $250,000 for misleading consumers about savings made on jewellery.

The case is said to have "significant implications" for all retailers in that Justice Lander  found Zamel's had misrepresented savings consumers would make from purchasing items during sale periods for as many as 44 jewellery items appearing in Zamel's various catalogues and promotions which had been distributed nationally and promoted on Zamel's website.

Out of the items of jewelry identified Justice Lander found that Zamel's had not sold the items at the higher price, or it had sold a very limited quantity at the higher price prior to the sale commencing. Justice Lander is quoted in his judgment as saying “the $250,000 penalty reflected the seriousness of the conduct”.

The case was prosecuted by the ACCC and the chairman is quoted as saying the penalty “was a clear message to businesses that the court takes a dim view of this sort of conduct.” (source click here).

As part of the judgment against it Zamel's is also required to publish corrective notices in newspapers, on its website, and to implement a trade practices compliance program and pay the ACCC's costs.

To read more click here.

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