Online retailer Kogan has been busted by the ACCC for doing the one trick we all suspected shops of doing – raising the price immediately before putting it on sale.
The retailed was hit with a $32,400 fine after a Father’s Day sale on its eBay store last year where Kogan advertised a 20% off sale on three different computer monitors. But, just before the start of the promotion, Kogan had increased the price of all of the monitors, meaning the 20% off discount was on an inflated price.
As a result, only a 9% discount was effectively received.
Shortly after the sale ended, Kogan restored the prices of the items to their original pricing before the hike.
Kogan paid the fine in response to the infringement notices, although legally the payment is not an admission of guilt.
“It is simply unacceptable for businesses to raise prices before applying a discount in order to give consumers the misleading impression that they are obtaining a larger percentage discount than is actually the case,” ACCC Acting Chair Dr Michael Schaper said.
It’s worth noting that most online retailers have their item pricing adjusted automatically through algorithms, so there’s a chance it could have just been poor timing with Kogan and the eBay sale.
Business Insider has contacted Kogan for comment.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.