CHEMIST CHAIN FINED FOR DODGY DISCOUNTS
Written on the 24 November 2015
The company behind Chemist Warehouse has paid $32,400 in penalties to the ACCC following three infringement notices.
Epharmacy Group, the owner of the websites for Chemist Warehouse, My Chemist and Epharmacy, has forked out $32,400 in penalties for making false or misleading representations.
The ACCC issued the three infringement notices because it had reasonable grounds to believe that Epharmacy had made false or misleading representations that consumers would save money off the recommended retail price for certain products.
The products, branded 'Healthy Care', are supplied exclusively to the Chemist Warehouse, My Chemist and Ephamacy.
As such, the ACCC considered that claiming consumers would get a discount purchasing the Healthy Care products from the Epharmacy sites was misleading, as the products had never been offered for sale at the RRP by those or any other retailers.
ACCC Commissioner Sarah Court says this type of behaviour is damaging for consumers who often rely on finding the best deal for their dollar.
"Consumers rely on comparative pricing to find the best deal available," says Court.
"If in fact there are no genuine savings, businesses are misleading consumers and risk enforcement action by the ACCC."
"The ACCC has taken this enforcement action to send a strong message to retailers that they must ensure they can substantiate any claimed savings off recommended retail prices."
Epharmacy removed the alleged misrepresentations after becoming aware of the ACCC's concerns.