The Consumer Affairs and Price Control Division has issued a strong warning to JSE Shop after finding that the store misled customers with false discount claims on cell phones and laptops,” according to their press release.
According to the Division, JSE Shop advertised that its products had been “massively reduced,” but investigations showed the items were never sold at the higher “was price.” This means the discounts were not real.
Director of the Division, Geoffrey Dan Hou’ua, said the behaviour is a clear breach of the Consumer Protection Act.
“Shops are advertising false discounts to entice consumers into their shop,” Mr Hou’ua said. “False advertising makes consumers think they are getting a better deal than they are with other suppliers, and it takes customers away from shops telling the truth about their prices.”
He explained that the Division is closely monitoring how stores display prices, both on the shelves and in their advertisements.
“Consumers need to know what price they will pay for goods, so having the correct price on the shelf is essential,” he said.
Mr Hou’ua also pointed out that the law requires all shops to clearly show accurate prices for every product they sell. However, many businesses are failing to follow this rule.
“We are finding that very few shops have accurate prices on the shelf, or that they have a list of prices displayed on a notice board,” he said. “We have been warning shops about their pricing behaviour, but it is likely that in the future, we will start prosecuting shops.”
He encouraged members of the public to report any misleading advertising or incorrect prices.
“If any consumer has seen advertising, or incorrect prices on the shelf, they can contact our office,” he said. The Division can be reached by phone on 24616 or at their office on the third floor of Mokolo Building in Chinatown.
Under Section 24 of the Consumer Protection Act, businesses that mislead or deceive customers can face serious penalties. A first offence can result in a fine of up to $10,000, up to one year in prison, or both. For repeat offences, the penalty increases to $20,000 or up to two years in prison, or both.
Mr Geoffrey Dan Hou’ua can also be contacted directly on 28459 for further information.
