Electronics retailer Digital Imaging Express, trading as DigiDirect, has paid a $99,000 fine after the consumer watchdog, the ACCC, completed its investigation into allegedly misleading advertising on certain products.
The ACCC said the advertising showed some products online as having their “prices slashed”, despite them never existing at a higher price. The commission gave an example of a mini wireless keyboard that was advertised for $149 with a “strikethrough price” of $229.
This conduct was found to be “false or misleading”, resulting in breaches of Australian Consumer Law.
“DigiDirect’s advertising may have misled consumers into thinking they were getting a genuine discount when in reality the products were rarely advertised and almost never sold at the higher strikethrough price, and the suggested discount was illusory,” said ACCC deputy chair Mick Keogh.
He added that “misleading discount and savings claims can influence consumers”, while preventing them from viewing competitors’ prices.
DigiDirect responded with a section 87b undertaking, admitting to contraventions of the law. This undertaking will bind the retailer for three years under the ACCC’s watch.
The settlement also required DigiDirect to remove the products in question, publish a corrective notice on its website for customers, and pay the fine.
As an online-first retailer, DigiDirect also operates seven brick-and-mortar stores. Its ownership group aims to reach $500 million in annual revenue through its flagship DigiDirect brand, the recently acquired Booktopia, Angus & Robertson, James Bennett and Mwave.