Charles Tyrwhitt Fined by ACCC For False Advertising
Monday 26 September 2016 @ 10.15 a.m. | Trade & Commerce
A London-based clothing manufacturer and retailer has been issued an infringement notice by the Australian Competition and Consumer Commission (ACCC) and has paid $10,800 in penalty. Charles Tyrwhitt LLP was issued the notice after a thorough ACCC investigation determined that the manufacturer had engaged in false advertising regarding its ‘was/now’ price comparison.
Background to the Infringement Notice
Charles Tyrwhitt advertises and sells extensively in Australia men’s and women’s shirts, business clothing and accessories through online catalogues and Australian newspapers and magazines. The brand is known for its deal-based offers such as sets of four shirts for $199. However, the ACCC investigation revealed that Charles Tyrwhitt had contravened Australia’s Consumer Law (contained in Schedule 2 of the Competition and Consumer Act 2010 (Cth)) in the sale practices of at least 737 business shirts.
In particular, the ACCC considered Charles Tyrwhitt’s representation of its ‘was’ price on a shirt for $160 and its ‘now’ price of $69. The investigation revealed that the ‘was’ price was only advertised for a short period of time and in a section of its website which was difficult to locate. Furthermore, no consumer had ever purchased the shirt for the ‘was’ price. The ACCC determined that in its ‘was/now’ price representation, Charles Tyrwhitt had suggested to its consumer that there would be a significant saving in costs. However, given the pricing practices regarding the ‘was’ price, the ACCC concluded that this was not the case because there was no genuine effort to retail the shirt at the ‘was’ price.
ACCC Commissioner Sarah Court explained:
Ms Court also explained that this result serves as a reminder to international businesses that practice in Australia that they must comply with Australia laws and regulations. However, it should be noted that the payment of the penalty is not an admission of guilt on the part of Charles Tyrwhitt. Furthermore, the ACCC’s issuing of an infringement notice only serves to notify the respondent that it has reasonable grounds to suspect an infringement has taken place.
TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.
