Calls to investigate Kogan over whether discounts are misleading | The Business

Leading online retailer Kogan is operating a second “clone” website to sell the same popular products at mostly higher prices, the ABC can reveal.
The little-known website, called Exclusive Brands, has operated for years and sells Kogan’s own brand products that include highly sought-after televisions, couches and washing machines, as well as furniture brands Matt Blatt and Brosa, bike and work-out range Fortis, and tool brand Certa.
The revelation has led to calls for the retailer to be investigated over whether it’s misleading customers by offering dubious discounts.
ABC analysis found that Kogan appeared to use the pricing differences to offer shoppers who were browsing kogan.com large discounts from what it calls the “standard retail price” (SRP).
However, Kogan has denied this was solely based on the prices on the Exclusive Brands website, saying it also charged the higher prices on Kogan.com.

“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.” It said.

According to experts, shoppers are highly motivated to buy a product if they perceive they are getting a bargain, and retailers are legally obliged to ensure the discounts are genuine.
Former Australian Competition and Consumer Commission (ACCC) boss Rod Sims said the revelations were of “great concern”.
Mr Sims questioned whether Kogan had used the Exclusive Brands site to make misleading price comparisons and called for the ACCC to launch an investigation.
Mr Sims said the public should not reach a conclusion until an investigation was complete.
Jeannie Paterson, a consumer law expert from the University of Melbourne, said she was surprised to see such a big price difference between the two sites, and it was not clear the reason for it was occurring when they were both owned by Kogan.
She agreed an ACCC investigation was needed.

Kogan defended its use of the Exclusive Brands website and denied any wrongdoing.
The company said it takes very seriously its obligations to present prices clearly and accurately.

The ACCC refused to comment on whether it would investigate.
In a statement, it said consumer law prevented businesses from “making false or misleading statements about prices, including about savings and discounts”.

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