Appliance retailer Froothie in trouble with ACCC again

The supplier of commercial kitchen appliances, Athena Solutions Pty Ltd trading as Froothie Australia ( Froothie ), has paid a $10,800 penalty after receiving an infringement notice from the ACCC. Froothie falsely represented to consumers that they were obtaining a discount when purchasing a blender, by using a strike through price statement. However, in fact, the blender had not been offered for sale at the higher price, prior to that representation being made. Extract from http://www.conventuslaw.com/report/australia-quarterly-consumer-law-update/

Extract from AER.gov.au Infringement notices The following infringement notices were paid in 2015–16. Table 3.45: Small business infringement notices paid Athena Solutions Pty Ltd t/a Froothie Australia 14 December 2015 One notice of $10 800 The ACCC issued the infringement notice to Froothie because it had reasonable grounds to believe that Froothie made a false or misleading representation that consumers would obtain a saving if they purchased the Optimum 9400 blender when this was not the case.

Extract from www.allens.com.au MISLEADING OR DECEPTIVE CONDUCT: PRICING IN THE ONLINE SPACE – KOGAN/FROOTHIE The ACCC recently issued infringement notices against Athena Solutions Pty Ltd trading as Froothie Australia and Kogan.com Pty Ltd for alleged false or misleading advertising in the online retail space. Froothie received an infringement notice after advertising a blender on its website at a 'promo price', which was shown immediately below a strike-through price statement. The ACCC had reasonable grounds to believe that this constituted a false or misleading representation (thereby entitling the ACCC to issue an infringement notice), as Froothie could not demonstrate that the blender had ever been sold or offered for sale at the strike-through price. Consequently, the two-price comparison did not reflect a genuine discount for consumers. Froothie incurred a penalty of $10,800 for this conduct. Kogan received three infringement notices and paid $32,400 in penalt...

ACCC acts on alleged false or misleading strike through pricing by Froothie Australia Here is the link to the original article published by the ACC https://www.accc.gov.au/media-release/accc-acts-on-alleged-false-or-misleading-strike-through-pricing-by-froothie-australia 17 December 2015 Athena Solutions Pty Ltd trading as Froothie Australia (Froothie), the supplier of Optimum branded kitchen appliances, has paid a penalty of $10,800 following the issue of an infringement notice by the Australian Competition and Consumer Commission. Froothie supplies Optimum branded domestic and commercial kitchen appliances such as blenders and juicers on the Froothie website. The ACCC issued the infringement notice to Froothie because it had reasonable grounds to believe that Froothie made a false or misleading representation that consumers would obtain a saving if they purchased the Optimum 9400 blender, when this was not the case. From at least 7 August 2015 to 23 October 2015...