Three major retailers have each been fined nearly $20,000 for allegedly misleading consumers with deceptive Black Friday sale advertisements that overstated discounts and falsely implied site-wide savings.
Jewellery chain Michael Hill, homewares store MyHouse (operated by Global Retail Brands Australia), and Hairhouse Online were issued $19,800 infringement notices each by the Australian Competition and Consumer Commission (ACCC).
The consumer watchdog launched a targeted review of dozens of sales ads during last year’s Black Friday and post-Christmas period. It found widespread use of marketing terms such as “sitewide” and “everything on sale” that did not reflect the true scope of the discounts on offer.
“Advertisements that talk about ‘sitewide’ or ‘storewide’ sales or promise discounts ‘off everything’ should deliver what customers expect,” said ACCC Deputy Chair Catriona Lowe.
“Businesses are legally obliged to accurately describe their sale offers and not bury exclusions in fine print.”
Michael Hill, a jewellery retailer headquartered in Brisbane and operating around 170 stores across Australia, New Zealand and Canada, advertised a “25% off Sitewide” promotion during Black Friday 2024. The ACCC alleged not all items were included in the promotion.
“Michael Hill’s statement may have misled consumers, and contravened the Australian Consumer Law, because some of the products in its online store were not part of the sale and were not discounted,” Lowe said.
MyHouse, a homewares business with 28 physical stores in Australia and an online presence, is part of the Global Retail Brands Australia group, which also owns House, Robins Kitchen and Baccarat.
During Black Friday, MyHouse ran online ads claiming “Up to 60% OFF RRP EVERYTHING ON SALE” with an additional “+EXTRA 20% OFF” offer. However, the ACCC said the extra discount did not apply across all products.
“We say this was misleading because the extra 20 per cent discount was not available on all of its products,” Lowe said.
“Retailers need to ensure that their advertising makes it clear to consumers which products are discounted, and by how much.”
Hairhouse Online, the e-commerce arm of Hairhouse Warehouse, which operates over 120 salons and retail outlets across Australia, offering hair and beauty products and services, was fined for advertising “SAVE 20% to 50% SITEWIDE”.
The ACCC found that more than a quarter of the products on its website were not part of the sale. “Businesses that make false discount claims not only risk misleading consumers, they also compete unfairly against other businesses that correctly state the nature of their sales,” Lowe said.
All three companies paid the fines, and the ACCC said it will continue to monitor promotions, particularly during major sales events such as the end of the financial year, to ensure compliance with the Australian Consumer Law.
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