Illegal use of RRP

Illegal Use of RRP in Advertising

A Victorian sporting goods retailer, Sportsmart will correct its use of comparative Recommended Retail Price (RRP) advertising following an ACCC investigation. The ACCC was concerned consumers were being misled about savings claimed on some products sold at Sportsmart outlets in the Melbourne suburbs of Moorabbin, Northcote and Noble Park.

Advertisements appearing in Sportsmart catalogues and intermittently in the Melbourne edition of the Trading Post and the Herald Sun, represented five lines of treadmills (various brands) and 56 styles of footwear (various brands) by comparing Sportsmart's price with the RRP.

The company admitted the advertised products had never been sold at the RRP at any of its retail outlets and that this may have misled consumers by creating an impression they were obtaining a significant saving.

The ACCC takes the position that price savings have a significant influence on a consumer's purchasing decision and that consumers are therefore entitled to expect retailers to fairly represent the savings in their advertising.

The complete article appears in the September 2005 News Bulletin

For more information contact:

Steve Moses on 0417 242 076 or email