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Supré fined for misleading consumers on price

28 November 2018

The Queensland Office of Fair Trading (OFT) has fined fashion company Supré Pty Ltd $12,600 after finding the company made misleading representations about the price of clothing at its Chermside store.

The $12,600 civil penalty notice was issued following a spot check of the store as part of the OFT’s 2018-2019 proactive compliance program.

In August 2018, OFT officers visited the Chermside store and found two sided racks of clothing that had large signs at the top advertising clothing for sale at ‘$10 and under’.

Officers checked a number of items on the racks and found two of them scanned at $15 rather than the advertised sale price.

Following the OFT’s intervention, parent company Cotton On Group advised it would provide further education to its retail team about signage and product placement, re-engage with staff about escalation processes to ensure customers receive an answer in-store, and ensure their retail team members have authority to honour the lowest advertised price.

Fair Trading Executive Director Brian Bauer said the Australian Consumer Law (ACL) made it unlawful for a business to make false or misleading representations about the price of goods.

“Businesses should check and identify any potentially misleading information before distributing it or displaying it to consumers,” Mr Bauer said.

“Representations about price should always match the price charged to consumers at the checkout.

“This outcome should act as a warning to other retailers to check their signage and product placements to ensure they are not misleading their customers.”

Note: The payment of a penalty specified in a civil penalty notice is not an admission of a contravention of the ACL. A civil penalty notice may be issued when OFT has reasonable grounds to believe a person has contravened certain consumer protection laws.