Kogan Case Shows Need To Consider Price Comparisons Carefully

Electronics retailer Kogan Technologies has agreed not to advertise "percentage off savings" that aren't based on actual prices, reminding us that consumers should always be wary of accepting any savings claims on face value.

As I report over at APC, Kogan Technologies has had its knuckles rapped for advertising "savings" based not on previously advertised prices, but on "comparable" (but not identical) models from other manufacturers. In one instance, the company's site claimed that purchasers of a a TV could save over $1500, even though the model in question had never sold for more than $1499.

Such practices aren't uncommon, so it's to Kogan's credit that it quickly agreed to withdraw such advertising and has entered into an undertaking with the ACCC not to use that kind of promotion in the future. It also reminds us that as consumers any savings claim should be taken with a grain of salt, and tested with a bit of careful price searching. As ever, the basic rule remains: if you're happy with the price you're paying and you're getting something that's useful and well-designed, it's a worthwhile deal. If you're only buying because of a perceived saving, pause and ask yourself: is it really that good a buy?

Kogan busted by ACCC over 'non-existent' savings [APC]


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