Australian online retailer Kogan has been caught operating a ‘clone’ website called Exclusive Brands, selling the same products with large price hikes.
The ABC reported the news this week after conducting an investigation, with some in the industry calling for an official investigation into the matter.
Kogan has defended its use of the Exclusive Brands website and is denying any wrongdoing.
The Exclusive Brands website does not sell clothing like the Kogan.com website does, but a check by this publication shows some products being listed on the Exclusive Brands website with a price tag that is double what it is on Kogan.
An Orbis 5 Piece Luggage Set is being sold on Exclusive Brands for $399.99, with the same set being sold on Kogan for $159. The Kogan listing says the standard retail price for this is $399.99.
In another instance, a Kogan Active Tactical GPS Smart Sport Watch in graphite colour is selling for $249.95 on Exclusive Brands, but sells for $109.95 on Kogan.
In a statement, Kogan denied the website was solely based on effecting discounts, claiming it also charged higher prices on Kogan.
"Kogan.com only advertises an SRP as a reference price where that price has been offered on kogan.com itself for a reasonable time and within a recent period of time," the company shared to the ABC.
"Standard Retail Pricing may also apply to the same product on other Kogan Group channels."
The ABC did ask for evidence that Kogan shared higher prices, but Kogan declined to share.
"Kogan Group does not disclose sales information regarding individual products," it said in a statement.
Founded by Ruslan Kogan in 2006, Kogan Group includes the Kogan marketplace in Australia, Mighty Ape in New Zealand, and a raft of retail services including insurance and mobile.
Over the 10 months to April 30, Kogan.com reported a gross sales growth of 18.2 per cent to $773.9 million, with revenue up 18.1 per cent to $358.1 million and gross profit up 19.5 per cent to $155.7 million.
Across the group, total gross sales were up 13.2 per cent to $875.6 million, with gross profit up 11.1 per cent to $177.9 million.