Another bedding retailer has got into trouble with the Australian Competition and Consumer Commission (ACCC), after it raised concerns over the genuineness of their recommended retail price representations.
Yarrabee Investments sells furniture products including bedding, through two retail stores in Victoria – Leather Lounges Direct and Dekabu Leather. It conducted a sales campaign from 3 April 2009 to at least 14 August 2009 advertising models of beds in the newspapers and on the retailers’ websites.
The ACCC raised concerns that the recommended retail prices asserted by Yarrabee Investments were not genuine prices.
Yarrabee Investments has acknowledged that it had no foundation for the particular recommended retail prices represented and accordingly agreed the representations are likely to be in contravention of sections 52 and 53(e) of the Trade Practices Act 1974.
"This is the second bedding retailer in days highlighted by the ACCC as using false or inflated higher prices which it has used to compare with its sale prices at the time," said ACCC chairman Graeme Samuel.
"Retailers referring to a product’s recommended retail price can not merely make that price up themselves."
Yarrabee Investments has provided the ACCC with a court-enforceable undertaking which ensures that all future advertising and other forms of promotion by Yarrabee Investments complies with Part V of the Act.