Issue Date:  -  Wednesday, 21 December 2005

Discount claims attract Consumer Watchdog

Well known rug retailer, Rugs a Million, and its owner Frederick Creagh Wicks also known via his television advertisements as ‘Craig’, have been sued by the Consumer Protection Commissioner in  the Supreme Court over allegations of misleading conduct including misleading claims of discounts on rugs in its WA stores.

Commissioner Patrick Walker alleges in the Supreme Court action against 3 Rugs a Million companies, director Wicks, the group’s national manager, Paul Mifsud and its state manager, Greg Stanton:

• Misleading or deceptive conduct; and
• Misleading representations as to the price of goods,

in violation of the Fair Trading Act and Trade Practices Act.

More specifically, the allegations against one or more of the defendants are that:

• Particular price discounts or percentage off discounts were not genuine;
• Rugs brand new to WA were immediately displayed in stores with 2 prices giving the misleading impression that they had been discounted;
• Particular discounts had never been offered before, which was false;
• Particular sales were advertised as being for a very limited time in circumstances where they went on for a longer period of time;
• There were rugs available for purchase at discounted prices when in fact none were available; and
• Rugs were ‘100% wool’ when they were not.

The Commissioner is seeking injunctions to stop the defendants from breaching the legislation in the future, declarations that they have engaged in unlawful conduct and orders for corrective advertising.