Issue Date:  -  Wednesday, 10 May 2006

Jewellers targeted in swoop on advertisements

Glitzy jewellery advertisements are being scrutinised in the lead-up to Mother’s Day to ensure shoppers are not misled about claimed bargains.

The national crackdown on jewellery advertisements is being led by the Australian Competition and Consumer Commission (ACCC) with support from state consumer protection agencies.

Consumer Protection Commissioner Patrick Walker said about 40 jewellery retailers across Australia, including national chain stores, have been asked to verify their claims of so-called savings.

“The lead-up to Mother’s Day is a prime period for jewellery advertising. Retailers need to be sure that their advertising is accurate, or they risk breaking the law,” he said.

Mr Walker said the advertising crackdown is concentrating on two-price advertising in catalogues such as “was $150, now $100” and follows complaints to the ACCC from consumers.

“This kind of advertising implies that consumers are saving money by paying less for an item now than they would have paid earlier,” Mr Walker said. “If these savings are not real and the item was never for sale at the “was” price then the claims of savings may breach fair trading laws.

“Jewellers, who flout the laws, should not expect to receive any leniency from consumer protection agencies because the national crackdown follows a concerted effort to educate the industry.”

The ACCC has published an industry-specific booklet entitled “Advertising and Promotion in the Jewellery Industry: a Guide to the Trade Practices Act” and conducted industry seminars earlier this year in conjunction with the Jewellery Industry Association.

Media Contact:       
Gay McNamara       
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