same month, the Good Guys, a subsidiary of JB Hi-Fi, paid a $13.5 million fine for misleading advertising and store credit promotions related to its ‘StoreCash’ promotion running from July 2019 to August 2023. Is this due to an increase in retailers’ legal negligence or a more active consumer watchdog? Mark Baartse, a retail marketing expert and fractional CMO, linked it back to an increase in funds at the ACCC. “It’s easy to forget that passing laws is one thing, but enforcing them is quite time-consuming and the relevant agencies require funding and resources to do this,” Baartse told Inside Retail. In 2024, the national consumer watchdog received an additional $30 million over 3.5 years from the Treasurer for investigations and enforcement relating to the supermarket and retail sector. “This uplift is likely tied to the additional funding the ACCC received in 2024, specifically for ‘investigations and enforcement relating to the supermarket and retail sector’,” Baartse said. “It’s multi-year funding, so we can expect these fines to continue,” he added. Gina Cass-Gottlieb, the ACCC chair, said active evidence-based enforcement of the Competition and Consumer Act is essential for deterring conduct that harms consumers, competition and fair trading. Passing the pub test  From Baartse’s perspective, retailers’ misleading promotions and advertisements are not getting lost in the marketing funnel; the problem, more often than not, is the messaging itself. “Compliance is mostly what happens with the retailer – on site or in store – and the channels used to promote those messages aren’t the primary issue,” he elaborated. “While there is an increase in complexity with more marketing channels, the core promotional message is, in most cases, channel agnostic.” Moreover, he believes the problem is not due to a grey area in the Australian Consumer Law that is difficult for retailers to comply with in a shifting landscape. “The core laws impacting retailers haven’t changed much in the last few years. The lack of compliance has probably made some retailers complacent,” Baartse stated. So, with a potentially more active ACCC on the lookout for misleading promotions, how can retailers make sure their messaging doesn’t result in a hefty fine? Before launching a new promotion, Baartse suggests retailers step back and look at the offer through a customer’s eyes, compare that with the messaging and ask if its passes the proverbial pub test.  “For example, if you say up to 60 per cent off, and only have one product at 60 per cent off, and you only have two [items] of that product in stock, that probably doesn’t pass the test,” he elaborated. If a promotion doesn’t meet the pub test, retailers should take steps to clarify their advertising materials to ensure they are not misleading and at risk of ACCC investigation. “Consumers expect fairness, not manipulation. The ACCC publishes compliance and enforcement priorities on their website every year,” Baartse said.  “Of specific interest to many retailers is a current focus on misleading pricing practices. A basic familiarity with ACCC guidelines is helpful, and if in doubt, seek legal advice.”