The holiday trading period is one of, if not the most, important season for retailers. It is essential that retailers remember amongst all the festivities to make their promotions and product offerings compliant with the law.
- Sales need to be substantiated!
The ACCC has cracked down on false or misleading sales promotions, including “Was/Now” advertising. For example, a t-shirt may be advertised as “Was: $199, Now: $50”. Always ensure that your products were actually advertised for the “was” price for a reasonable period of time and that you have documented evidence to back this up!
- Ensure your competition permits are obtained well beforehand.
Trade promotions such as random or luck-based competitions, may require a permit depending on the State in which you are running the competition. Ensure that you are aware as to whether you need one, as early as possible because it can take a number of weeks to obtain the relevant permits.
- Make sure your refunds policy and extended warranty claims are compliant!
With all the sales going on, retailers generally want to limit how consumers may return a sale item. Many retailers are also opting to offer extended warranties on their products. However, it is essential that you are aware that:
(a) in the case of a major fault, customers may elect their remedy (eg. you must offer a refund as an option, you cannot offer ‘exchange only’); and
(b) the return period for faulty goods cannot be limited by a particular time limit – the Australian Consumer Law may allow returns for goods for a further period of time.
Remember – if your Sale page says, “No refunds*”, it may still be considered misleading! It is best to refer to easily accessible terms and conditions and your refund policy in promotional material.
If you need advice about your holiday sales and promotions or need help drafting your refunds policy, do not hesitate to contact me at or call me at 1300 033 934 for a no-obligation quote.