Jewellery store ‘misled’ customers

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JEWELLERY store chain Zamel’s “misled” consumers about savings to be made during sales, The Federal Court has found. 

The court found that Zamel’s misrepresented the savings consumers would make from purchasing items during sale periods in respect of 44 jewellery items, and that Zamel’s had either not sold the items at the higher price quoted in the sale, or had rarely sold them.

Australian Competition and Consumer Commission chairman Rod Sims said the court’s decision sends a clear message to businesses big and small, in all areas of retailing.

“It is unlawful to use this kind of advertising and represent that consumers would make savings during a sale when the savings claimed are not real,” he said.

The ACCC is seeking penalties in relation to the misrepresentations made by Zamel’s in the May 2010 catalogue, a declaration, corrective advertising, compliance training and costs.

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