Major retailer is caught out misleading customers with dodgy discounts just a day after hiking prices on HUNDREDS of items - so were you ripped off?
- Retailer Kogan launched its 'TAXTIME' 10 per cent promo code in June 2018
- Immediately after, Kogan raised the prices on more than 600 products
- Australian Competition and Consumer Commission took Kogan to Federal Court
- Kogan defended its actions, saying they were not misleading their customers
Online retailer Kogan misled customers with a 10 per cent discount just a day after hiking prices on hundreds of products, the Federal Court says.
Kogan launched its 'TAXTIME' 10 per cent promo code in June 2018, immediately after raising prices on more than 600 products.
In many cases the price hike was at least as much as the discount offered.
Kogan launched its 'TAXTIME' 10 per cent promo code in June 2018, immediately after raising prices on more than 600 products
The Australian Competition and Consumer Commission took Kogan to the Federal Court, which on Friday ruled the retailer engaged in misleading or deceptive conduct.
ACCC boss Rod Sims said many customers ended up forking out as much as, if not more than, they would otherwise for the 621 products immediately before or after the promotion.
Kogan discounted those items, in many cases by at least 10 per cent, again two days after the sale ended.
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Over four days in 2018, the company emailed more than 10 million customers with messages including '48 hours left!' and 'ends midnight tonight!'.
It also advertised the discount on its website and sent texts to more than 930,000 customers.
Kogan defended its actions, saying they were not misleading because customers using the code received a 10 per cent discount on the price stated online at the time of the promotion.
The Federal Court disagreed. It will decide on penalties for Kogan at a later date.
The company has been contacted for comment.
Kogan defended its actions, saying they were not misleading because customers using the code received a 10 per cent discount on the price stated online at the time of the promotion (pictured: Kogan founder and chief executive Ruslan Kogan)
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