Sporting retailer admits breach

A Victorian sporting goods retailer has received a rap over the knuckles by the Australian Competition and Consumer Commission (ACCC) after it admitted offences under the Trade Practices Act (TPA).
The ACCC launched an investigation into Sheldon Park, which has Sportsmart outlets in Moorabbin, Northcote and Noble Park, after it became concerned consumers were being misled about savings claimed in store promotions.

The brand's advertisements, which appeared in Sportsmart catalogues and in the Melbourne edition of the Trading Post and Herald Sun, promoted lines of treadmills and footwear by comparing Sportsmart's price with the more expensive recommended retail price (RRP).

But ACCC chairman Graeme Samuel argued the advertised products had never been sold at Sportsmart outlets at the RRP, therefore the savings should not have been claimed.

As a result of the investigation, Sheldon Park has undertaken to display disclosure notices for four weeks in each of its outlets and publish similar notices in the newspapers where the misleading ads were published.

It has also agreed to implement a "robust" trade practices compliance program, which will require it to conduct a risk assessment of its current procedures, undertake staff training focusing on the relevant part of the TPA and review all advertising and promotional advertising to ensure it complies with the act.
Samuel said the ACCC takes comparative pricing very seriously as price savings had a significant influence on a consumer's purchasing decision.

"Consumers are entitled to expect retailers are fairly representing savings in their advertising," Samuel said.

Smortsmart managing director Mike Woods could not be reached for comment.